5 ms·

What would someone typically be paid, if anything, to join the board?

anujabro 7y ago
I believe it varies across co's. Here's what I found for FB "Netflix NFLX CEO Reed Hastings and Peter Thiel both collected $349,151 just for being on Facebook's board in 2017, mostly in the form of stock awards. The other three members of the board made comparable amounts last year." https://www.nasdaq.com/articles/all-fun-salary-info-uncovered-facebooks-fb-proxy-statement-2018-04-18 https://www.nasdaq.com/articles/all-fun-salary-info-uncovere...
deleted 7y ago
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thesausageking 7y ago
It has to be disclosed, so you can look it up in the SEC filings. When Ken Chenault was added in 2017, his offer was $350k per year, with $50k in cash and $300k in RSUs. Jeff Zients received the same offer in 2018, except he got an additional $20k for being on the audit committee[1]. So, to answer your question, $350-370k / year. [0] https://content.edgar-online.com/ExternalLink/EDGAR/0001326801-18-000032.html?hash=b50c564befd7f2b257d587f6f2ebb32789c239bfbe4448eef39b00f0e83a9d27&dest=FB-03312018XEX104_HTM#FB-03312018XEX104_HTM https://content.edgar-online.com/ExternalLink/EDGAR/00013268... [1] https://content.edgar-online.com/ExternalLink/EDGAR/0001326801-18-000057.html?hash=e3867cb34053f157c6221be99d1590e2ae5d77d3f053df8a091da8462f490be0&dest=FB-06302018XEX101_HTM#FB-06302018XEX101_HTM https://content.edgar-online.com/ExternalLink/EDGAR/00013268...
- nostromo 7y ago
  While that sounds like easy money -- it's worth noting that boards are quite regularly sued, and sued personally, for breach of fiduciary duty, in class action lawsuits. So there's some risk and potential cost involved with taking these positions. Edit: thanks for the reply below!
  - redis_mlc 7y ago
    That's what O & D insurance is for. The company pays for that.
    - texasbigdata 7y ago
      Not to be pedantic but I've only heard it referred as D&O insurance. The directors come first and its relatively expensive: google quotes $5k a year per million of coverage. Also not all things are covered and it can be litigated (in my limited experience) to force the insurer to pay. Plus you can still do something that gets you personally in trouble even with coverage. Obviously, a sweet gig and incredibly hard to get. But everything has some hair around it.
    - bradleyjg 7y ago
      Insurance can cover judgments but can’t get you out of being repeatedly deposed.
  - jmchuster 7y ago
    > easy money Kind of a strange thing to say 350k to work as a board member is easy money, when the requirement to become a board member in the first place is to be a CEO who was previously being paid tens of millions of dollars a year.
    - xiphias2 7y ago
      I can imagine that the knowledge one gathers from being on the board is worth much more than that.
    - ojbyrne 7y ago
      Still being paid millions to be CEO. Being on a board is nowhere near a full time commitment.
    - wheelerwj 7y ago
      There is no requirement to have formerly been a CEO. There are no requirements at all for sitting on a board.

I believe it varies across co's. Here's what I found for FB "Netflix NFLX CEO Reed Hastings and Peter Thiel both collected $349,151 just for being on Facebook's board in 2017, mostly in the form of stock awards. The other three members of the board made comparable amounts last year." https://www.nasdaq.com/articles/all-fun-salary-info-uncovered-facebooks-fb-proxy-statement-2018-04-18 https://www.nasdaq.com/articles/all-fun-salary-info-uncovere...

deleted 7y ago

[deleted]

thesausageking 7y ago

It has to be disclosed, so you can look it up in the SEC filings. When Ken Chenault was added in 2017, his offer was $350k per year, with $50k in cash and $300k in RSUs. Jeff Zients received the same offer in 2018, except he got an additional $20k for being on the audit committee[1]. So, to answer your question, $350-370k / year. [0] https://content.edgar-online.com/ExternalLink/EDGAR/0001326801-18-000032.html?hash=b50c564befd7f2b257d587f6f2ebb32789c239bfbe4448eef39b00f0e83a9d27&dest=FB-03312018XEX104_HTM#FB-03312018XEX104_HTM https://content.edgar-online.com/ExternalLink/EDGAR/00013268... [1] https://content.edgar-online.com/ExternalLink/EDGAR/0001326801-18-000057.html?hash=e3867cb34053f157c6221be99d1590e2ae5d77d3f053df8a091da8462f490be0&dest=FB-06302018XEX101_HTM#FB-06302018XEX101_HTM https://content.edgar-online.com/ExternalLink/EDGAR/00013268...

nostromo 7y ago
While that sounds like easy money -- it's worth noting that boards are quite regularly sued, and sued personally, for breach of fiduciary duty, in class action lawsuits. So there's some risk and potential cost involved with taking these positions. Edit: thanks for the reply below!
- redis_mlc 7y ago
  That's what O & D insurance is for. The company pays for that.
  - texasbigdata 7y ago
    Not to be pedantic but I've only heard it referred as D&O insurance. The directors come first and its relatively expensive: google quotes $5k a year per million of coverage. Also not all things are covered and it can be litigated (in my limited experience) to force the insurer to pay. Plus you can still do something that gets you personally in trouble even with coverage. Obviously, a sweet gig and incredibly hard to get. But everything has some hair around it.
  - bradleyjg 7y ago
    Insurance can cover judgments but can’t get you out of being repeatedly deposed.
- jmchuster 7y ago
  > easy money Kind of a strange thing to say 350k to work as a board member is easy money, when the requirement to become a board member in the first place is to be a CEO who was previously being paid tens of millions of dollars a year.
  - xiphias2 7y ago
    I can imagine that the knowledge one gathers from being on the board is worth much more than that.
  - ojbyrne 7y ago
    Still being paid millions to be CEO. Being on a board is nowhere near a full time commitment.
  - wheelerwj 7y ago
    There is no requirement to have formerly been a CEO. There are no requirements at all for sitting on a board.