Board Director Compensation

  The annual compensation paid to board directors is generally composed of an annual cash retainer, board meeting fees, and stock options or stock grants. These stock options are generally equivalent in value to 20-25% of a director’s annual retainer. A standard compensation package might consist of a $93K cash retainer, $1.5K fee per board […]

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Liability Insurance for Board Directors

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 […]

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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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