The following Board Member Contribution Models apply to positions in start-up and emerging growth technology companies where the Board Member contributions fit existing executive management needs and these efforts will warrant some form of compensation.
A Board Member (Advisory, Regular, or Active) is committed to a small or emerging firm that needs fast access to a senior executive’s advice or contribution, and:
· Is familiar with company staff, Board and investors
· Knows, and is current with, the company’s business, products, and markets
· Is available to step in immediately in areas of need
· Is motivated by the company’s ultimate financial success (with compensation substantially composed of equity) rather than just the opportunity for consulting fees
Advisor/Regular Board Member
Time commitment typically includes:
· Board meetings (assumed to be scheduled six to twelve per year)
· Phone meeting advice
· Contact information and introductions to external agencies and people
· Time with CEO and others, as required after Board meetings
· Total time assumed to average one-half to one full day per month
Active Board Member
Time allocated and committed for more involvement and/or contribution allows more detailed and timely assistance to management team:
· Plan outlines, suggestions, detailed review and proposed revisions
· Direct involvement with agencies, recruiters and/or financing sources
· Maintain timely information regarding key company staff, current strategy details and product plans
· Total time assumed to average one to four days per month
| Area |
Advisory
or Regular Member |
Active
Board Member |
Assigned
Projects |
|
|
|
|
|
Finance
|
·
Review
financial plans, statements ·
Identify/contact
sources |
·
Executive
staff planning meetings ·
Review
bank and leasing terms and advise; attend key meetings |
·
Drive
and guide planning process ·
Help
conduct negotiations for bank and leasing company |
Financing |
·
Financing
advice and consent |
·
Help
prepare presentations and materials |
·
Find
money sources, strategic partnerships, private investors and venture
capital |
Human Resources |
·
Final
interviews |
·
Consult
on HR policies ·
Interview
candidates |
·
Help
design and document performance and/or salary review process ·
Primary
recruiting agent |
General Management |
·
Review/advise ·
Advise
on executive staff personnel and performance issues |
·
Specify
process needs ·
Review
strategies, define alternatives and suggest choice criteria ·
Business
plans; detailed review and revisions ·
Discuss,
investigate and make recommendations on staff issues |
·
Design/document
process ·
Research/propose
strategic plan ·
Research
and draft business plan ·
Serve
as interim “acting VP or CEO” where special circumstances require |
Marketing |
·
Review/advise ·
Make
contacts/introductions |
·
Help
review/select PR and/or advertising agencies ·
Review
product/promotional plans and advise ·
Assist
as high level spokesman for key activities (e.g., IPO, major
introductions) |
·
Product
positioning ·
Plan
and/or conduct PR and/or merchandising programs |
Manufacturing |
·
Advise/assist
in prototype manufacturing ·
Review
manufacturing philosophy |
·
Participate
in selection of vendors/high volume production |
·
Introduce/help
select off-shore manufacturers /vendors |
Negotiations |
|
·
Review
terms |
·
Define/document
terms and/or conduct negotiations |
Sales |
·
Introduce
potential customers to company |
·
Attend
sales presentations/assist sales staff |
·
Help
penetrate/close key accounts |
Technical |
·
Interface/advise
on research and development projects |
·
Participate
in design reviews and strategic planning positioning meetings |
·
Guide
project team on a specific technical objective/schedule |