Let’s talk about surprises. And whether to warn your superiors or your boards about these unraveling events early. You have a dashboard or KPI’s, don’t you? Every good executive has a set of critical data points that best alert him or her to the changes in the flow of business most important to note and in […]
Are Your Chairman and CEO the Same Person?
Here’s one that targets most any company that has taken investments at any stage, as well as more mature companies. Why would you split the positions? More and more today, shareholder organizations recommend that the positions of chairman and president (or CEO) be split, so there are checks and balances at the board level in the […]
The Best Things About Your Company Board
For weeks, we’ve highlighted both good and bad things about boards of directors for your company (or non-profit.) This week, let’s focus upon number one—aside from the requirements of boards to protect the company itself (not the shareholders.) Normal functions of boards Boards of directors fulfill numerous important functions, both legal and structural. Boards provide […]
So Your Board is Dysfunctional. What to Do?
It happens. Boards are elected by the shareholders, sometimes with preferred shareholders holding seats by right of their investment. In that instance, often the investor selects the board member and the CEO goes along with the choice, mostly out of having no alternative at the time. How the board can arrive at dysfunction Then there comes […]
Let Your Board Help with “What” and “Why” but Rarely “How”
I am sure you can argue with this one. Sometimes a board member is valuable in teaching the “how” to get things done inside the company. But experience reinforces the usual fact that a board member telling the CEO or founder “how” to perform a function crosses a line and can diminish the CEO’s confidence […]
Does Your Board Give You Good Advice?
This may be news, but boards of directors can offer bad advice. Having served on more than forty boards, I’ve seen such a variety of good and bad advice that my stories could fill a book. (oh, wait. They have…) So, lets delve into board composition, risk of an unbalanced board, and one of those […]
How Do You Pay an Early Stage Board?
Give one percent equity to each outside board member vesting over four years of service. Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members. Here is my best advice, based upon many boards and many years. Pay early stage board members of companies that […]
What’s a Company Board Good for, Anyway?
Some of you have gotten along forever without a board of directors, or used your spouse as the “other” board member from the start. But there are some very good reasons to build a great board composed of some outside members. And good board members can add real value to you and the company. In other […]
How Would You Like a Great Advisory Board?
Have you ever thought of creating an advisory board? As you can guess, that would be an informal group with no legal responsibilities, but one able to be called upon to act as business, industry and scientific advisors to you and the company. Usually, you would want to create an advisory board to fill in the […]