A typical approach to the selection process for board appointment is the grid matrix. The grid functions as an easy way to identify the different areas of expertise and experience that the directors on a board lack now or will lack in the future. The grid matrix is formatted with the board’s desired backgrounds listed […]
Board Diversity Legislation
As the economic and social significance of board diversity becomes more widely recognized, some U.S. state legislatures have taken initiatives to address the rising concerns for demographic variety in the corporate boardroom. Listed below is the run-down of each state that has introduced and/or passed bills regarding diversity. Laws California (2018) Senate Bill 826 By […]
Board Director Compensation
Director compensation packages generally include an annual retainer, per meeting fees and annual stock options or stock grants. Annual director remuneration has steadily risen due to the complexity of board governance and increased regulation. Usually, a figure equivalent to 20-25% of the retainer is used to determine the amount of stock options paid to a […]
Liability Insurance for Board Directors
An important consideration when joining a board is Director & Officer liability insurance, commonly known as D&O insurance. Public companies purchase D&O insurance to protect directors and officers from the chance of getting sued by stockholders, vendors, competitors and other parties. These lawsuits can arise if directors or officers are accused of violating their duties […]
Filing Your Taxes as a Board Director
As a director, your fees are not considered employee wages or a salary (W-2). Instead, the IRS considers you to be an independent contractor and your income is reported on Form 1099-MISC in Box 7 (Nonemployee Compensation) and this is what you will use when you file your Form 1040 (Schedule C). Because your company […]
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