You can future-proof your career with a Board Seat

The demand for Independent Board Directors rarely decreases, even during challenging times such as a pandemic, economic downturn or recession. Organizations need boards, and most boards need a number of independent directors. It is often during challenging times when organizations place more gravity on governance and the skills represented or lacking on their boards. Paid board roles are highly prized because they provide a supplementary income stream. However, any board seat, including voluntary roles, offers opportunities to strengthen, grow, and future-proof your career.

According to the U.S. Spencer Stuart Board Index – 2021, during the height of the pandemic, the S&P 500 companies provided some interesting statistics:

• • 35% of the directors appointed during the period were serving on their first outside public company board
  • Directors 50 years and younger made up 16% of newly appointed directors
  • 56% of new directors were actively employed
  • 37% of boards had an independent board chair
  • The average total director compensation rose 1% to $312,279

These statistics show that the demand for and remuneration paid to board directors does not diminish during tough times.

A voluntary board seat saved my career during the GCF

During the Global Financial Crisis, I worked as an executive and board recruiter in the UK. Unemployment soared worldwide, impacting over 210 million people and causing a devastating blow to the recruitment industry. As you can imagine, around 80% of my colleagues were unemployed. Similarly, countless professionals from various industries experienced the same predicament.

Fortunately for me, this was not the case. In fact, not only did I remain employed, but my career progressed. I credit this to my first voluntary board seat with a small not-for-profit organization. But more specifically, to the connections I made and the skills I cultivated during that tenure. In my case, a board seat was key to future-proofing my career.

Board roles can future-proof your career

For many, board seats provide vital supplementary income (directly or indirectly). This income is significant for those considering retirement or semi-retirement. For full-time executives, the extra income can be a lifeline or just added peace of mind during turbulent or stressful times.

But income is not everything. All board, committee and advisory roles, paid or voluntary, can play a meaningful role in professional development and future-proofing your career. The personal and professional connections established and the experience gained can be leveraged to create new career opportunities or income streams in the future.

There are many ways a board seat can help future-proof your career: 

• • Supplement your income. In the USA, the median compensation for members of private company boards of directors was $42,500 in 2022. The average annual retainer for S&P 500 independent board directors in 2023 was $143,106. In general, compensation can be in the form of retainers, meeting fees, paid expenses or stock allocations.
  • Build your profile and strengthen your professional brand. Adding the title of Board Member or Board Director to your CV and LinkedIn profile can boost your professional stature and career.
  • Demonstrate strategic success. Board roles provide the environment and platform to acquire strategic experience and achieve strategic success, which is fundamentally important to driving or sustaining your executive career.
  • Broaden your skills. Regardless of your executive skills, a board seat will develop your governance experience and offer the opportunity to utilize your existing skills at a macro level. These skills are relatable, transferable, and highly valuable to your executive career.
  • Build leverageable networks. Even small or Not-for-Profit organizations have significant independent directors serving on their boards and committees. Working on a board alongside them can open up networks and access to individuals you would ordinarily never encounter.
  • Provide an opportunity to give back – Boards offer an opportunity to give back to an industry or community that has supported you or a business or cause you are passionate about. This can provide an emotionally rewarding and fulfilling focus during tough times or career gaps.
  • Facilitate a more fruitful retirement. Serving on a board allows one to maintain relevance, stay mentally and socially engaged, continue contributing, and develop new professional relationships.

Successful Independent Directors know these 3 things

It doesn’t matter if you have held a board seat before or are considering your first; whether you are a CEO, retired, or just starting your career, successful board appointments take planning.

Successful Independent Directors are clear about three things:

1. The organizations they should target to pursue a board seat
2. Why THEY should be appointed to the boards of those organizations
3. How they will be appointed

Start your board career today

Whether you want to future-proof your career or not, a board seat should be factored into your career plan.

Finding and gaining a board seat is a competitive process, regardless of whether you are just starting out. But don’t let this deter you. Independent board opportunities are out there, and with more organizations setting mandatory terms for independent directors, these opportunities are more prevalent than you imagined. Our Board Appointment, Coaching Plus program, will show you how to find these opportunities and get ahead of the competition.

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