Board of Directors Selection Issues

The purpose of the following is to provide suggestions for issues to consider when an owner wants to form a Board of Directors or a group of business advisors.  In any specific situation an item below might be very important, nice but not really necessary or not applicable at all.  These suggestions might potentially stimulate other issues to consider as well.

• Responsibilities
  • Raising capital
  • Business strategy
  • Motivation / Leadership
  • Operational oversight
  • Business development (sales)
  • Providing a specific technology expertise
  • Mergers and Acquisitions
  • Transition / Succession

• Authorities
  • Advice only
  • Approval / Veto Power

• Background
  • Company Executive
  • Banker
  • Attorney
  • Accountant
  • Engineer
  • Customer
  • Vendor
  • Human Resources
  • Information Technology
  • Industry expert
  • Labor
  • Government
  • Education

• Method of payment
  • Retainer
  • Meeting attendance fee
  • Performance incentive
  • Dividend

• Alternate solutions
  • Consultants
  • Networking Groups
  • Chambers of Commerce
  • CEO Forums