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lwpat, Attorney
Category: Business Law
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Experience:  Attorney with over 35 years of business experience.
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Forms of compensation for board of directors?

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What form of compensation do members of a corporate board of directors receive? Are they always shareholders or can they receive other compensation such as a percentage of revenues? If a director acts in an advisory fashion can I provide him compensation yet have him remain an independent contractor?
Submitted: 4 years ago.
Category: Business Law
Expert:  lwpat replied 4 years ago.
The board can be shareholders, officers and simply a totally independent party. For example I am sure that Donald Trump sits on a number of boards of companies in which he has no financial interest. You can pay board members in any method but normally it is a simple per diem for the meetings that they attend. Usually only shareholders receive a percent of revenue but you could set aside a set percentage to be paid to the board as a whole.
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