Advantages to being on the board

[tinman0]

Friend asked me last night if there are any advantages to being on the board of a company that you own no shares in?

As a guess, being on the board is being a director, and a director having no shares has very little advantages.

[Eric Mc]

Many directors of companies are not shareholders. The directors make day to day decisions about the running and management of the company - they may even have a say in the dividends that are actually paid to the shareholders. Obviously, shareholders have ultimate power.

If the individual wants to have some say in how the company is run, then being a director is one way of achieving this. He will have to weigh up the ability to make these decisions with any financial benefits he may receive coupled with his duties and resonsibiolities as a director.