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Get to know about the duties, responsibilities, qualifications, and skills requirements of a board member. You can use our job description template in this article to produce your own. We also provide you with information about the salary you can earn as a board member.

 

Who is a Board Member?

A board member is a professional on the Board of Directors (BOD) panel appointed by shareholders to represent their interests and supervise management. The Directors run the company by implementing comprehensive strategies and launching planned objectives.

 

Board Member Job Description

Below are the board member job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.

A board member’s duties and responsibilities include the following:

• Act as a liaison between the organization and its funders or donors, including soliciting donations and guiding potential donors through the donation process.
• Participate in the planning of fundraising events such as galas or dinners, auctions, or concerts to raise funds for the organization’s mission.
• Take part in strategic planning activities to assist the organization in meeting its goals and objectives.
• Examine financial statements and other records to ensure that the organization is sticking to its budget.
• Examine membership applications to see if candidates are eligible for membership.
• Review and approve policies and procedures to ensure that they comply with state and federal laws.
• Review and approve budgets to ensure that they are realistic and reflect the organization’s priorities.
• Examine grant applications to see if they meet the criteria established by the organization’s board of directors.
• Review and approve personnel policies such as hiring and firing decisions, pay raises, and employee disciplinary actions.
• Review the agenda and supporting documentation before meetings.
• Keep abreast of issues and trends affecting the organization.
• Take part in the assessment of business operations and executives.
• Approve audit reports, budgets, and business decisions.
• Participate in the creation of policies and strategic plans.
• Ascertain that the organization complies with all legal requirements.
• Keep all internal organizational affairs confidential.

 

Qualifications

A board member must meet the following qualification requirements.

1. Education: The majority of board members have a bachelor’s degree or higher, and many have a master’s degree. In some industries, such as finance, board members may be required to hold a specific degree, such as a Master of Business Administration (MBA).

Many members of the board choose to pursue a degree in business administration or finance. These degrees equip board members with the knowledge and skills necessary to effectively manage a business.

2. Training and experience: Many nonprofit organizations require board members to complete training programs to become familiar with the organization’s mission, values, and practices. These training programs can last anywhere from a few hours to several days and can be delivered in person or online. Some organizations may require board members to attend annual training to remain current on the organization’s practices.
3. Licenses and certifications: Though certifications are not always required for board member positions, they can be an effective way to demonstrate your dedication to the nonprofit sector and your ability to serve on a board.

 

Essential Skills

As a board member, it is required of you to possess the following skills.

1. Active Listening Skills: Active listening is the ability to focus on what another person is saying and respond to them accordingly. As a board member, you may be in a position where you need to listen to a colleague’s concerns or ideas and respond to them accordingly. This is an important skill for board members to have because it allows them to communicate with their colleagues more effectively.
2. Critical thinking abilities: The ability to analyze a situation and make a decision based on the information available is referred to as critical thinking. Board members frequently have to make important decisions about the future of an organization, so they must be well informed. This necessitates the ability to gather data, evaluate it, and make a decision.
3. Excellent problem-solving abilities: Problem-solving abilities are required for board members because they help them find solutions to challenges that the company may face. You can use problem-solving skills to identify the root cause of a problem, devise a solution, and assess its effectiveness. Problem-solving board members can help their organizations grow and develop by finding solutions to challenges.
4. Capability to Work in a Group: The ability to work with others to achieve a common goal is referred to as collaboration or teamwork. You may be required to collaborate with other board members, the executive director, and other staff members to make decisions and develop strategies for the organization as a board member.
5. Management abilities: Overseeing and delegating tasks effectively helps to maximize time, resources, and productivity. To assign tasks and set achievable goals, board members must have a thorough understanding of each employee’s and department’s strengths. Strong managerial abilities include providing your company with the training and resources it requires to achieve its objectives. Strong management abilities also include the ability to prioritize tasks to achieve optimal results promptly.
6. Good Communication abilities, both written and verbal: As a board member, you are frequently in constant communication with other leaders and employees throughout the company. When training new employees, discussing business strategies, and providing task directions, strong written and verbal communication skills are essential. Not only does clear communication help to build rapport with your team, but it also ensures that everyone understands the company’s short- and long-term goals, as well as what is expected of them.
7. Analytical abilities: Extracting meaningful insight from information, intelligence, or data about your company and industry can assist you in making strategic decisions that will lead to growth. A company director should be able to interpret and recognize which information is most relevant to the company’s goals. Strong analytical skills can also help you come up with creative solutions to any problems your organization is facing.
8. Adaptability: Board members should be adaptable so that they can respond quickly to changes in the panel and their industry. Board members not only plan but also anticipate potential challenges that may necessitate changes. Being able to adapt quickly to changes can aid in maintaining a productive workflow.
9. Creativity: A creative mindset can boost productivity and lead to organizational success. Board members who demonstrate and encourage creativity are constantly looking for new ways to improve and streamline processes, look for future opportunities for growth, and find creative solutions to various challenges. Innovative thinking can also reshape business models, resulting in meaningful change and a competitive advantage for the company.
10. Policy Development Capabilities: The ability of a board member to develop organizational policies and procedures is critical. Board members frequently collaborate with the executive team to develop company-wide standards for how employees should conduct themselves, produce, and interact with customers. This ensures that all employees work toward the same goals and that the organization operates fairly.
11. Strategic Thinking Capabilities: The ability to see how current actions can lead to future outcomes is referred to as strategic thinking. Strategic thinkers on boards can understand a company’s mission and vision and then identify ways to help it achieve those goals. Strategic thinkers can also assess potential risks and challenges in the future and determine if there are any steps the organization can take now to prepare for them.
12. Ability to Make Decisions: A member of the board must be able to make decisions on behalf of the organization. This could include things like voting on new initiatives, approving budgets, and hiring new employees. A board member must be able to make sound decisions to act in the best interests of the company. Board members must also be able to make quick decisions when needed.
13. Financial knowledge: The ability to understand and interpret financial data is referred to as financial literacy. You may be responsible for reviewing budgets, analyzing revenue streams, and making investment decisions as a board member. Financial literacy can assist you in making informed decisions that benefit your organization.
14. Marketing abilities: A background in marketing can assist a board member in understanding how to promote the organization and its initiatives. This skill set can also assist them in developing strategies to encourage people to donate money or volunteer with the company. Members of the board with marketing backgrounds may be able to persuade others to agree on certain topics, such as changing the company’s name or implementing new procedures.
15. Capacity to Lead Others: The ability to guide and direct others is referred to as leadership. As a board member, you may be in charge of directing committees or task forces focused on specific organizational objectives. Leadership abilities can assist you in motivating your team members and ensuring that everyone has the resources they require to complete their work. You could also take on leadership roles within the organization, such as executive director of a nonprofit or department head in a large corporation.

 

How to Become a Board Member

Here are some steps you should take to become a member of the board.

1. Obtain a bachelor’s degree in business, economics, or a related field: The minimum educational requirement for this position is a bachelor’s degree. While a major in business administration or economics is the most common, any program that includes finance, marketing, and management coursework will be beneficial.

Consider joining an organization like the Business Roundtable or the National Association of Corporate Directors while pursuing your undergraduate degree to gain experience and network with other professionals.

2. Gain business experience, preferably at the management level: To become a board member, you must have extensive business experience. While you do not have to start your own company to become a board chair, working for an established corporation or startup where you can learn about leadership and management can be beneficial.

As your career progresses, strive to take on more responsibilities within your organization. This will assist you in developing the skills required to lead a board of directors. Consider taking on roles outside of your current industry to broaden your knowledge and provide new perspectives.

3. Improve your leadership abilities: A board member must be a strong leader capable of guiding and directing other board members. This entails honing your interpersonal skills, such as listening to others and providing constructive feedback. You should also be comfortable in public and be able to communicate clearly and concisely.

You may also be required to negotiate on behalf of the board with shareholders or investors. Having prior experience in this area will aid you in carrying out your duties as chairman effectively.

4. Become familiar with corporate governance and the role of boards of directors: The board of directors is in charge of supervising the company’s management and ensuring that it follows legal and ethical guidelines. The board member collaborates with other board members to set corporate goals, review financial reports, and monitor senior executives’ performance.

The board also ensures that all applicable laws and regulations are followed by the company. It examines and approves major business decisions such as mergers and acquisitions, and it monitors managers’ actions to ensure they are acting in the best interests of shareholders.

5. Understand the company’s bylaws and policies: The board member is in charge of ensuring that all company policies and procedures are adhered to. This includes going over corporate bylaws, which outline how meetings should be run and other aspects of board governance.

In addition, the chairman must ensure that all legal requirements are met. A publicly traded company, for example, must hold an annual meeting where shareholders can vote on specific issues. The chairman makes certain that these events take place as planned.

6. Attend board meetings and participate in committee work: As a board member, you must attend regular meetings and serve on committees. Members of the board of directors typically meet once or twice a month to discuss company strategy, review financial reports, and vote on major decisions.

You may also serve on one or more standing or ad hoc committees of the company. These groups are in charge of specific tasks in governance, finance, human resources, legal issues, and other areas. You can contribute your experience and expertise to these efforts.

7. Keep in touch with the CEO and other members of management: A good working relationship should exist between the board member and the CEO. The chairman can advise the CEO on how the board perceives him or her, while the CEO provides the chairman with information about company operations.

The chairman also communicates with other members of management, such as CFOs and presidents, to ensure that they are adhering to board policies and carrying out the company’s mission and vision.

 

Where to Work as a Board Member

Board members are typically elected officials who serve on a board, commission, or committee that makes decisions or oversees a specific area of government. They may also serve on private, nonprofit organizations’ boards or commissions. Board members usually work part-time, but they may work full-time when the board is meeting or there is a lot of work to be done, such as preparing for a meeting or investigating a problem. Board members must be able to collaborate effectively with other members of the board as well as the staff of the organization they are in charge of. They must be able to make quick decisions and justify those decisions to the public.

 

Board Member Salary Scale

The average Board Member salary in the United States is $73,602, but the salary range typically falls between $56,732 and $90,906.

The average board member’s gross salary in London, United Kingdom is £100,670, or £48 per hour. This is 22% (+£18,334) higher than the average board member’s salary in the United Kingdom. They also receive an average bonus of £17,094. Salary estimates are based on salary survey data collected directly from employers and anonymous London employees. The average salary for an entry-level board member (1-3 years of experience) is £65,032. A senior-level board member (8+ years of experience), on the other hand, earns an average salary of £157,819.

The average board member’s gross salary in Toronto, Ontario is $83,369, or $40 per hour. This is 5% more than the average board member’s salary in Canada (+$4,196). They also receive an average bonus of $7,962. Salary estimates based on salary survey data from employers and anonymous employees in Toronto, Ontario. The average salary for an entry-level board member (1-3 years of experience) is $55,383. A senior-level board member (8+ years of experience) earns an average salary of $130,019 per year.

The average salary for a board member in Ireland is €127,006, but the range is typically between €104,843 and €162,072.

The average board member’s gross salary in Sydney, Australia is $165,937, or $80 per hour. This is 6% more than the average board member’s salary in Australia (+$10,018). They also receive an average bonus of $28,176. Salary estimates based on salary survey data from employers and anonymous employees in Sydney, Australia. The average salary for an entry-level board member (1-3 years of experience) is $107,369. A senior-level board member (8+ years of experience, on the other hand) earns an average salary of $260,561.

In Germany, the average gross salary for a board member is 69.065 € or 33 € per hour. They also receive an average bonus of 6.596 €. Salary estimates are based on salary survey data from employers and anonymous employees in Germany. An entry-level board member (1-3 years of experience) earns 45.881 € on average. A senior-level board member (8+ years of experience, on the other hand, earns an average salary of 107.711 €.

In Nigeria, a board member typically earns approximately 583,000 NGN per month. Salaries range from 298,000 NGN (the lowest) to 898,000 NGN (the highest) (highest).

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