Exploring Private Board Opportunities: A Hidden Gem
Every year, thousands of qualified executives chase the elusive dream of landing a board seat in a public company. With an estimated 30,000 board positions available in the U.S., competition is fierce, and for those seeking roles, the wait can be agonizing. However, this narrative overlooks a vast landscape that remains largely untapped—the world of private company boards.
The Case for Private Company Boards
Tate Pursell, a seasoned manufacturing CEO and private equity expert, advocates for a shift in focus among executives. In his book Roadmap to Your Next Board Seat, he reveals that private companies—family-owned businesses, private equity portfolio firms, and others—actually offer a greater number of board positions than their public counterparts. Pursell emphasizes that among the hundreds of thousands of private board seats, the competition is notably less intense, presenting a more approachable landscape for qualified candidates.
Understanding Board Dynamics and Responsibilities
Most executives view board service as a post-career activity, a second act. However, Pursell argues this perspective limits their potential. Becoming involved in private boards during an active career allows leaders to apply insights from their current roles and gain valuable experience. These positions can boost one's professional résumé while also providing financial rewards, particularly through equity stakes in high-performing private firms.
Unlocking Financial Potential: Compensation Beyond Salaries
While the average compensation for private board members hovers around $30,000 per year, the equity component can be substantial. Pursell recalls serving on a family business board for 15 years, which resulted in significant financial gains as the company flourished. Such potential is particularly pronounced in private equity settings, where the goal is often a lucrative exit. For experienced executives, this could lead to both meaningful contributions and financial upside.
Actionable Tips for Pursuing Board Roles
For CIOs, HR leads, and business process managers looking to navigate the board nomination process, several strategies can enhance visibility:
- Leverage LinkedIn: Your network is crucial. Ensure that your LinkedIn profile is up-to-date and reflects your skills, experience, and aspirations toward board service.
- Engage with Private Directors Association: Joining or following organizations that connect directors with private firms can help streamline the search process.
- Highlight Unique Expertise: Emphasize your skills in areas critical to board success, such as digital transformation and risk management.
- Develop Interpersonal Skills: Being a board member isn't just about past experiences; it also involves diplomacy and the ability to challenge decisions thoughtfully.
- Seek Volunteer Opportunities: Gaining experience in non-profit boards can also be a stepping stone to corporate board roles.
The Future of Board Composition
As the dynamics within boards evolve, the necessity for diverse perspectives becomes increasingly clear. Notably, many companies are now looking for candidates who can challenge the status quo. Beyond traditional backgrounds, companies are emerging that seek individuals from various fields, driven by evidence that such diversity leads to enhanced corporate performance. Notable trends include an increasing demand for executives who are not only skilled but also capable of navigating complex governance landscapes.
Final Thoughts: Why You Should Consider Going Private
The landscape of private company boards is growing and evolving. For today's executives, this world offers not only an opportunity to contribute their expertise but also the potential for invaluable growth during their active careers. Taking a proactive approach toward these roles can lead to not just personal fulfillment but also significant financial benefits. Embracing the mindset of seeking not just public, but private board positions can open new doors for both professional development and impactful leadership.
Call to Action
If you're ready to explore new board opportunities within private companies, start refining your professional narrative and network. Understand today’s board challenges and leverage your unique strengths to position yourself effectively in this expanding market. Embrace the journey and discover how private board service can elevate your career.
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