Boardroom Dreams: Why Everyone Wants to Be a Board Member (But Few Should Be)

It seems everyone these days is angling for a board seat. With the rise of startups and small businesses, LinkedIn profiles are awash with aspiring Non-Executive Directors (NEDs) and advisors, convinced their 15 or 25 years of corporate experience make them indispensable to young companies. The allure of wielding influence, attending strategy sessions, and padding one’s résumé with “Board Member” is undeniable. But for those who’ve served on real boards, the reality is far less glamorous—and far more demanding.

The Boardroom Fantasy

For many, the appeal of a board seat lies in the perception of power without responsibility:

• The Illusion of Authority: Being on a board is often seen as a way to showcase one’s expertise while guiding a company to success. It’s imagined as an intellectual exercise—attending a few meetings a year, offering sage advice, and basking in the glow of strategic decisions.
• The Prestige Factor: A board title carries a certain social cachet, particularly in industries where appearances often outshine tangible contributions.

However, these fantasies often clash with the reality of board work, especially for Boards of Directors, where the stakes include legal liability and hard decisions—not just offering opinions over coffee and croissants.

What Real Boards Entail

1. Legal Liability

Members of a Board of Directors aren’t just advisers—they’re legally accountable for the company’s actions. This includes ensuring compliance with laws, overseeing management, and upholding fiduciary responsibilities. If a company fails—or worse, engages in malpractice—directors can face personal liability.

High-profile cases like Enron, where board members were sued for failing to prevent fraud, or Theranos, where a star-studded board failed to challenge unethical practices, illustrate the risks. Unlike advisory boards, whose role is informal, directorial boards operate within strict legal and financial frameworks. The stakes are high, and mistakes can have serious consequences.

2. Decision-Making, Not Just Opinions

Directors aren’t there to merely “give input.” They vote on critical decisions, from approving budgets to hiring executives and setting long-term strategies. These decisions are binding, with real implications for the company’s future.

3. Work, Not Prestige

Real board work requires preparation—reading lengthy reports, scrutinizing financial statements, and asking tough questions. Directors must hold management accountable, provide strategic oversight, and navigate crises. Far from being a vanity role, it’s demanding work that often involves steering the company through stormy seas.

Building the Right Board: Lessons from Experience

Startups and small businesses often face a deluge of applications when advertising board opportunities. As someone who built a small advisory board for Slate Mountains Capital, I can attest to the challenges firsthand. I screened over 200 applications and conducted 40 interviews before finding three individuals I trusted. The process was illuminating, but also exhausting.

One applicant, a former HR executive, confidently asked about compensation per meeting and enthusiastically explained how they would “bring their opinion” to discussions. I had to gently (and internally, not so gently) explain:

1. Advisory Boards Are Not Directorial Boards: Advisors offer insights, connections, and informal guidance. They don’t carry the legal or operational responsibilities of directors.
2. Real Boards Require Real Work: Board meetings aren’t salons for pontificating—they’re work sessions with tangible deliverables and accountability.

This mismatch of expectations is common. Many people mistake board roles for résumé-padding opportunities, failing to realize startups often need hands-on, operationally focused members who can contribute to execution, not just vision.

Boards Are Not Stamp Collections

Startups often fall into the trap of treating their boards as decorative assets—a collection of big names to impress investors. But a board is a working team, not a stamp collection. Its value lies in its ability to guide the company through challenges and opportunities, not in its roster of titles.

Common Pitfalls in Building Boards

1. Too Many People:
   • Large boards dilute accountability and slow decision-making. Startups don’t need 12 people weighing in on every issue.
2. Wrong Expertise:
   • A VP from a Fortune 500 company may not understand the scrappy, resource-constrained realities of startups. Boards need action-oriented members, not corporate veterans stuck in big-company thinking.
3. Prestige Over Purpose:
   • Adding big names for credibility often backfires. If the board isn’t aligned with the company’s mission, its value evaporates.

Advisory Boards vs. Directorial Boards

Advisory boards, while lacking legal liability, can provide significant value when structured properly. They’re particularly useful for:

• Filling Knowledge Gaps: Advisors can bring specialized expertise, particularly in niche markets or emerging industries.
• Signaling Credibility: A well-curated advisory board reassures investors that the company has access to strategic guidance.

However, the value of an advisory board depends on the alignment of its members with the company’s goals. An advisory board filled with disconnected or passive participants is little more than a vanity project.

Lessons for Aspiring Board Members

If you’re considering joining a board, here’s the unvarnished truth:

1. Know What You’re Signing Up For:
   • A Board of Directors role isn’t about prestige—it’s about work, oversight, and accountability.
2. Focus on Fit, Not Titles:
   • Startups don’t need generic corporate experience. They need board members who understand their challenges and can offer actionable solutions.
3. Check Your Ego:
   • A board isn’t a stage for showcasing your opinions. It’s a platform for delivering value and working collaboratively.

Conclusion

The allure of the boardroom is understandable—it promises influence, prestige, and the chance to shape a company’s future. But boards are not stamp collections, and board roles are not cushy gigs where you simply turn up to meetings. They’re about work, responsibility, and accountability.

For startups, building the right board takes time and effort. For aspiring board members, it takes humility and a willingness to roll up your sleeves. So, if you’re considering a board role, ask yourself: Are you prepared to do the work, take on the liability, and contribute meaningfully? If not, you’re better off sticking to your day job—or rethinking what “contribution” really means in the fast-paced world of startups.