Board Member Compensation
A board member is being compensated depending on what type of business the company is in, how many years it had been operating, and how big the company is.
These factors will affect the earnings a board member will receive. It may be a profit or non- profit organization.
There are different kinds of compensation, depending with the company you are working for. They may be insurances, medical benefits, travel benefits, mixed reimbursements, cash stipends, and sometimes they are also provided stock options.
A board member is provided a life insurance such as natural or accidental death. The coverage is usually twice the annual salary of the employer or more. An optional insurance is also provided which is called Group life Insurance. You need to enroll your beneficiary and you need to pay for the monthly premium.
For all employees, medical benefits is being provides that includes dental coverage, disability, vision packages, critical illness coverage. Sometimes companies tend to reimburse prescribe medicines given by doctors, as long as receipt is provided and the medicine bought is indicated in the medical prescription.
Mixed Reimbursement Benefits
As a board member, you are entitled for various kinds of reimbursement, aside from travel and medical reimbursement. These may be mobile phone reimbursement as you are using your phone for business or gasoline for your car, food expenses and other variables. Important thing is to keep track of your expenses and receipts for you to be covered.
Board members are given cash allowances or cash stipends for business purposes. They are given these allowances for each meeting they conduct.
The best compensation a board member can receive is to be a stockholder of the company he is working for. Being a stockholder or shareholder will give you the rights to vote and declare dividends especially for company issues.
Rights and Privilege OF Stockholder
- Owns part of the business
- Right to Vote on Company Matters
- Transfer of Ownership Rights
- Right for Corporate Inspection
- Right to Claim Assets and Profits
Average Annual Salary of a Board Member
According to simplyhired.com the annual average salary of a board member is $54,000. The basis will be depending on what type of industry, where the company is located, and what are the benefits included.
Responsibility of A Board Member
Along with the benefits and compensation that a board member receives is a responsibility. He needs to be reasonable for all the decision he will be making. All knowledge about the company must always be used for the company’s gain not for himself. He needs to be loyal with the company, attend board meetings, be dedicated to his work, set example to others.
Being a board member is truly an ideal job, you will be receiving different compensation but it requires passion, trust and dedication.
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