Board Seat Benefits That Make Serving on a Board a Career-Defining Move

Introduction

Many people perceive the appointment to a corporate board as an honorable, high-profile position available only to a select few, but demand continues to be strong for board members (chiefly independent directors) in business today. Current trends in the evolution of corporate governance make it increasingly clear that the opportunities associated with being a member of a board will continue to become more visible and more recognized among professionals. This allows many to view securing a position on the board as more than just a professional milestone; it can represent a reengineering of one’s career trajectory, the establishment of new relationships, and the increase of one’s impact.

This blog will provide insight into some of the benefits of serving on boards that directly contribute to career advancement and why it should be a consideration for aspiring leaders to add to their overall professional development plan.

A board seat isn’t just a role—it’s a career-defining opportunity to influence strategy, expand networks, and elevate leadership impact.

Earning Additional Income: A Formidable Source of Additional Income

The most obvious benefit of service on a board is the financial aspect. While most non-employee members do not receive any remuneration for service, there are many independent boards that provide a substantial compensation package to members. In fact, many independent boards provide ongoing compensation through both annual retainer fees and per meeting fees; the amount may vary depending upon the prominence of the organization operating the board. However, there are also some boards that will provide equity or stock in lieu of payment for service, potentially resulting in an ongoing source of income over time.

Some board members will make more money from the various boards on which they serve than they currently do in the executive positions of their companies. This additional income from serving on multiple boards can also be a draw for those serving on board members in industries with some of the most competitive compensation structures and can serve as a significant source of income to the board member (i.e. some not-for-profit board members). These board members typically use their roles to create networking opportunities and build relationships with other directors, which often lead to additional consulting opportunities.

Creating Business Opportunities Through Board Membership

In addition to the obvious financial benefits, serving on a board offers the opportunity to create new businesses through board member relationships. Serving on a board allows you to meet many influential industry leaders, decision-makers, and partners whom you would not otherwise meet and who can introduce you to many additional opportunities outside of the boardroom. The relationships developed while serving on the board are often the basis for various types of collaborative relationship opportunities (consulting, business partnerships, or capital investments) with organizations in which you are presently involved.

For example, I served on many not-for-profit boards where I was not compensated for my board service. However, the networking relationships and contact established while serving on these boards opened doors for a long list of consulting engagements that would not have been available to me without my service as board members. As such, board members can be viewed as a portal for developing new business opportunities and collaborations that otherwise might not be possible.

Elite Circle: Gravitas

Being part of an elite decision-making group gives you prestige in your profession. There are advantages to sitting on a board: there is a level of gravitas that comes with being part of an organization's governing body. Only about five percent of people in your profession serve on boards; therefore, if you gain a board position, you separate yourself from the majority of people in your profession.

Being a member of an elite group gives you a superior level of status in your profession, indicating that you have the credibility needed to be an advisor to help provide guidance for many of the most significant organizations. Having the gravitas associated with being a member of an elite board enhances your reputation as a leader in your field.

Strengthening Your Executive Skills Through Strategic Management Success

The experience of serving on a board will help you develop your strategic management skills in dramatic ways. The primary responsibilities of serving on a board involve governance/oversight and providing strategic direction—both having a major impact on organizational success. In being involved at this level, you are continually challenged to be more strategic in terms of identifying long-term objectives of the organization you serve, establishing priorities for the organization, and determining the organization's market position.

Through the experiences gained by serving on a board, you will be able to improve your strategic thought processes and your ability to lead. For executives who want to advance to the C-suite, having this experience will enhance your candidacy for a promotion.

The knowledge acquired and the experiences earned when you work your way through board discussions or strategic decisions and risks will be invaluable for future executive positions.

Expand Your Governance/Diplomatic Skills

One of the most significant benefits of using a seat on the board is developing your governance and diplomatic skills. As a board member, you work closely with other senior professionals and need to reach consensus amongst many different opinions, often when the circumstances are difficult. This gives you an understanding of how to navigate complex discussions and build consensus, both of which are essential skills for senior executives.

In addition, governance is a critical part of the discussions held in the boardroom. The board provides you with practical experience in the area of corporate governance, including risk management, compliance and the oversight of corporate activity—all of which are transferable to almost any leadership role. These governance skills are highly sought after across most industries; therefore, you will be able to add even more value to yourself as a leader in any working environment.

Enhancing Your Leadership Journey with Career Development

One way to grow your leadership skills and career is by serving on a board. Board service allows you to show that you are capable of working at a strategic level beyond your everyday job as an executive. This can be beneficial if you are trying to get promoted at your existing company or if you want a more senior executive position. The skills that you acquire and the experiences that you gain from serving on a board are worth the time and effort that you have invested into it.

The other benefit of serving on a board is that it gives you the opportunity to demonstrate your leadership capabilities, particularly in regard to dealing with the complexity of risk management, strategic growth, and other organizational challenges. When hiring managers see board-level experience listed on a resume, they typically give that applicant more consideration when applying for other senior types of roles.

Leveraging Your Network

One of the most under-appreciated benefits of serving on a board is the access to a powerful network of some of the most influential business leaders in their field. Even if the organization is small, the directors typically are very well connected to the executives in their industry. So while you are on this board you have access not only to the other executives that are directors of this organization but also to the larger network of those executives.

Many times larger commercial board directors will serve on charity or advisory boards. The connections made by serving in these two different capacities can create new opportunities, ventures, and ways to collaborate with others. This type of network can be highly leveraged to help expand your professional network, as your experience on one board may result in you being invited to join additional board(s) or partner with other organizations.

The Desire to Give Back: Contributing to a Cause

Serving on a board gives you an opportunity to give back to an industry that you’re passionate about, or support a cause that’s important to you. Many nonprofit organizations rely on the volunteer support of board members. These types of volunteer roles provide you with resources and expertise to help guide or facilitate the growth of the nonprofit, as well as to create a positive impact on the community by supporting that type of organization.

Both personally and professionally, there’s great satisfaction when contributing to meaningful causes. Serving on a board increases your sense of purpose in your work and can be particularly rewarding in the latter part of one’s career when one wants to make a difference and build a lasting legacy.

How to Keep Your Career Relevant After Retirement

For many professionals nearing retirement age or thinking about reducing their working time, the option to stay active and engaged with their profession is often to look for part-time board positions. That means that after leaving a full-time job, you can keep a high degree of respect and influence in your industry as an active board member, while not having to be in the office every day.

Board members generally have opportunities to continue to be engaged and relevant in their respective industries without having to take on the full-time requirement of being running a day-to-day business. Boards allow you to contribute to your industry strategically while providing you continued opportunities for learning and adapting as you grow in your profession.

The Stability of Serving on a Board: Navigating through Economic Cycles

Board members also benefit from stability through the cyclical nature of the economy, business interruptions, and periods of uncertainty. Throughout the financial crisis of 2007-2008, and with the COVID-19 pandemic affecting our economy, the nature of board service often has meant that boards have strengthened themselves by adding board members to assist with emerging risks and changes to the organization.

Given the overall economy, regardless of whether you are on a board or in a high level of senior executive management, this stability gives a sense of job security, particularly given the long-term nature of the appointment.

To summarize, being an executive on a board is not only a high-end milestone but also a major milestone in your career with countless board seat benefits for you. Some benefits include financial, personal development, strategic development and creating connections with people. Obtaining a board position has many advantages regardless of where you are in your career, whether just starting out, wanting to gain more experiences or preparing for retirement; obtaining a board position represents a great chance to further develop an already successful career or to create positive change throughout the world as a leader.

In order to obtain a board position it is approximately developing a plan that involves identifying target companies, developing your skill set and using your contacts. Once you know the three areas you need to master in order to ultimately obtain a board role, you can create ways to use those areas to secure a board position and significantly enhance your career like so many others before you have done.

If you are looking to increase your income, expand your influence or give back to your community, securing an executive board position can serve as the platform to effect change or provide you with long term career satisfaction.