Benefits and pitfalls to executive service on corporate boards
This is an article of mine published June 28, 2013, by Findlaw KnowledgeBase webzine.
This article discusses the benefits that Board of Director service can offer to an executive to advance his or her career, including the following
- Stock and options that can be quite lucrative.
- Opportunities to network and learn from peers
- Observation of other organizations manage their affairs
- New source of information (in your own company or in business generally)
- Source of new contacts to take the next step up the career ladder
However, Boards have significant responsibility to oversee management of the business. It is important that the board does its due diligence to review the transactions before it and record those deliberations. The Board owes fiduciary duties to the shareholders so it is important to assure proper care and diligence, and also insurance coverage.
To read more, LINK: http://knowledgebase.findlaw.com/kb/2013/Jun/1109506.html
If you are on a board or considering taking a position on a Board and have questions, issues or need representation on such issues as
- Scope of your responsibilities,
- Exposure to liability, or
- Terms of stock, options or compensation
Or, if you have other needs on your executive, stock, options, employment terms, non-compete or severance, please do give me a call or shoot me an email.