Attracting high-performing board members is essential for achieving strategic objectives and maximizing shareholder value. A board can be a strategic weapon in your corporate arsenal to improve performance (read our recent article here: Unlock the Power of a High Performing Board: Why Your Business Can't Afford to Miss Out). However, attracting top talent can be a challenging task, and it's crucial to develop a thoughtful and strategic approach to attracting and retaining top board talent.
Studies suggest that compensation is lower on the list for most high-performing board members, and the more important factors are management quality, an opportunity to learn, and the strategic challenge they are interested in helping the company overcome.
Here are some tips to attract top talent to your board:
Define the Role and Responsibilities of Board Members
It's essential to clearly define the scope of the board's authority, its relationship with management, and its responsibilities. To attract high-performing board members, you must clearly articulate the value proposition of the board position, including the benefits of serving on your board, such as the opportunity to contribute to the strategic direction of the company, the potential for personal and professional growth, and the ability to make a positive impact on the organization and its stakeholders. Creating a Prospectus that outlines the company's history, its growth objectives, its vision, mission, and values, and the roles and responsibilities of each board member is critical to attracting top talent.
Focus on a Strong Board Culture
Creating a strong board culture is an essential factor in attracting high-performing board members. Board members want to serve on boards that are well-run, efficient, and collaborative. Therefore, it's essential to create a culture that fosters open communication, transparency, and accountability. Developing a strong board culture requires a commitment from both the board and management. Board members must be willing to actively participate in board meetings, provide constructive feedback, and support the strategic objectives of the organization. Management, in turn, must be willing to listen to the input of the board and be open to constructive criticism.
Offer Competitive Compensation
Compensation is still an important consideration for attracting high-performing board members. Board members are typically compensated for their time and expertise, and the compensation package should be competitive with other similar board positions. Benchmarking your company to market levels and using resources such as our 2023 Private Company Board Compensation Survey can help you determine a competitive compensation package.
In conclusion, attracting high-performing board members is a critical step in achieving your organization's strategic objectives and maximizing shareholder value. By defining the role and responsibilities of board members, focusing on a strong board culture, and offering competitive compensation, you can attract and retain top board talent.