Serving on a co𝓀rporate board of directors can be aꦿ lucrative side gig or second career for high-profile executives and recent retirees. Board membership is less stressful and time-consuming than earlier positions board members have taken on, while still offering an impressive income.

The median compensation for members of private company boards of directors was $32,000 in 2024, according to an industry study by Compensation Advisory Partners. That's actually a 7% increase from the year before.

It goes a lot higher from there. Compensation for board members can easily reach $300,000 to $500,000 a year, according to Veritas, an executive compensation consulting service.

Not surprisingly, the most lucrative seats go to directors at S&P 500 companies. Average compensation in 2023 at those firms was $321,220, according to Spencer Stuart's S&P 500 Compensation Snapshot. That's a 2% increase over the previous year. Another top payer was Goldman Sachs Group Inc., which paid its directors an average of $429,585 in 2023.

Board members in general, by the way, participated in an average of 7.6 meetings, in person or remotely, during 2023.

If you’re interes𓂃ted in pursuing a board seat, here’s what you need to know about what boards are looking for, how to get noticed, and what to expect as compensationಞ.

What Companies Seek in a Board Member

You can sometimes learn what companies seek in their board members by reading the company’s annual 澳洲幸运5官方开奖结果体彩网:proxy statement. For example, some of the qualities Wal-Mart says it’s looking for in board members include: "outstanding achievement in their ♈professional careers; broad experience and wisdom; personal and professional integrity; ability to make independent, analytical inq🎃uiries; experience with and understanding of the business environment; willingness and ability to devote adequate time to Board duties."

The proxy statement also says the company is seeking “expertise in governance, strategy, development, and execution”; people who understand “financial, operational and strategic issues facing large retail companies”; global or international business experience; technology and e-commerce experience; marketing, 澳洲幸运5官方开奖结果体彩网:brand management or 澳洲幸运5官方开奖结果体彩网:public relations experience; finance, accounting, or financial reporting experience; or regulatory or legal experience.

Diverse Candidates Sought

The more qualifications you can bring to the table, the better. In recent years, companies have also begun to seek ethnic and gender diversity on their boards.

These descriptions are fairly generic. By learning about the backgrounds of existing board members, you can extrapolate what the company isཧ probably looking for in new ones.

Attractive qualities include experience in high-level work for the federal government, positions as a CEO or director, experience founding and running a successful startup, and experience on other boards.

Look for a gap in expe🐭rtise that might be left when a current board member steps down. Could you fill that gap?

Youth Is Not a Barrier

Boards aren't entirely made up of retirees and people nearing the end of their careers. You will compete for board positions with people who have been extremely successful at a young age.

Walmart's current board members include Cesar Conde, 50, chair of NBCUniversal, and Marissa Mayer, 48, who is well-known for the high positions she achieved at Google and Yahoo.

How to Get Noticed

Your strategy to get noticed and be considered 𒁏for board member🅰ship should be similar to the strategy it takes to secure any high-level position.

“Make sure you develop a board resume that positions you as qualified for the corporation’s board,” says , who currently serves on the boards of Eastman𒁃 Chemical Company, and Berry Corporation. “Make sure your resume states what you will specifically bring to the table as a board member.”  

Search Firms Can Help

Executive search firms can streamline the process since they’ll know about available positions. Hornbaker suggests giving your resume to search firms you’ve dealt with in the past and letting them know you're interested in obtaining a board position. 

“Finally, make sure you are networking and letting people know what boards you are suitable for, 👍while also leveraging contacts you might have with tꦏhe companies that you might be interested in,” Hornbaker says. 

Networking Is Key

You'll want to pursue networking both online and offline. For online networking, , CEO of BoardProspects, recommends his site, a board-recruitment network akin to LinkedIn. Its members include current board members, aspiring board members, and corporations looking to hire board me𒐪mbers. Complement your online networking with face-to-face connections at events, conferences, and social gatherings, he says. Opening ꦿup lines of communication to a second- or even third-degree connection could lead to an excellent fit for the board position you seek. 

Hornbaker al💎so recommends becoming educated on thღe fundamentals of governance and directorship through a program such as the .

Once you find a good prospect, you must be nominated by the 澳洲幸运5官方开奖结果体彩网:nomination committee, then approved by 澳洲幸运5官方开奖结果体彩网:shareholder election. 

Director Responsibilities

Only 澳洲幸运5官方开奖结果体彩网:outside directors get compensation specifically for serving on the board. Inside directors, who are mostly C-suite level executives, don't receive additional compensation.

Hornbaker says pay depends on the complexity of the company, whether it's public or private, the number of meetings it entails, and the amount of responsibility involved.

As a board member, your responsibilities would typically include𝓡 preparing for and attending board meetings, and reviewing company 💃filings and materials, she says, as well as advising management on a wide range of matters, including succession, strategy, compensation, and acquisitions. 

Representing Shareholders

Rogers adds, “Board members are the representatives of the shareholders, and it is their 澳洲幸运5官方开奖结果体彩网:fiduciary duty to oversee the affairs of the corporation, including overall performance and fiscal strength, and toꦜ serve as a consultant for management—particularly with respect to the strategic and operational directives of the company.” 

Formal board meetings where all the directors are present typically occur four to six times per year, depending on the company. 🐲

“Obviously, if there is a crisis or a strategic issue—for example, an acquisition—the n☂umber of hours for a director can dramatically increase,” Roge🦋rs says. 

Hornbaker says attending committee meetings might be another responsibility. “For example, 澳洲幸运5官方开奖结果体彩网:audit committees have regular meetings before public filings,” she says. “Another example would be compensation meetings to discuss c✨ompensation plans and awards.”

Examples of Top-Paying Boards

 Here are a couple of examples of what 澳洲幸运5官方开奖结果体彩网:Fortune 500 companies pay their board members.

Walmart Inc.

According to the company's 2024 proxy statement, Walmart’s compensation program for outside directors offers base compensation of a $200,000 annual stock grant and a $100,000 annual retainer.

Outside directors who hold certain board positions receive an additional annual retainer: $50,000 for the lead independent director; $30,000 for audit committee members; and $20,000 for compensation, nominating, and governance committee chairs, strategic planning and finance committee chairs, and for technology and 澳洲幸运5官方开奖结果体彩网:eCommerce committee chairs.

Apple Inc.

Apple’s non-employee directors each receive approximately $275,000 worth of 澳洲幸运5官方开奖结果体彩网:restricted stock units per year, which are granted at the annual shareholder meeting and vest on Feb. 1 of the �🌞�following year.

Non-employee directors also receive an annual ca꧟sh retainer of $100,000. The board chair receives an additional $175,000; the audit committee chair receives an additional $37,500; the compensation committee chair receives an additional $32,500, and the nominating committee chair receives an additional $27,500.

Non-employee directors also get every new Apple product for free on request and can purchase more at a discount.

To find out what any publicly held company pays its board members, read the company’s annual proxy statement, available from its corporate website or the 澳洲幸运5官方开奖结果体彩网:Securities and Exchange Commission website.

The Bottom Line

As an outside director, you could bring a fresh perspective to a corporate board and leverage your years of experience as an executive into a satisfying new project that still leaves you with enough time to do your day job or enjoy your retirement. Spencer Stuart reports that the average time commitment to serve on a board is a little over five hours per week.

Aside from the financial compensation, your reward will be having substantial input into major decisions made by the company, such as executive hires, policies on 澳洲幸运5官方开奖结果体彩网:dividends and stock options, and executive pay—all while 澳洲幸运5官方开奖结果体彩网:representing the best interests of management and shareholders.