Board Director vs. Board Member: What Are the Differences?

Board directors and board members are both important roles within a company. A board director is responsible for the overall management of the board, while a board member is a member of the board who may or may not have voting rights. If you’re interested in becoming a board director or board member, understanding the similarities and differences between the two can help you decide which is the best fit for you. In this article, we compare and contrast board directors and board members, and we provide tips for those interested in pursuing a career in corporate governance.

What is a Board Director?

A Board Director is a member of a company’s Board of Directors, which is a group of individuals elected by the company’s shareholders to oversee the management of the company and make decisions on its behalf. Board Directors are responsible for ensuring that the company is run in a way that is in the best interests of its shareholders. They approve or reject major decisions made by management, such as the hiring of senior executives, the sale of the company, or the issuance of new shares. Board Directors also set the company’s strategic direction and provide oversight to ensure that management is acting in accordance with the Board’s wishes.

What is a Board Member?

Board Members are responsible for governing the organization and ensuring that it meets its goals and objectives. They provide strategic direction, make decisions on behalf of the organization and represent the organization to external stakeholders. Board Members also oversee the financial health of the organization and ensure that it is compliant with all legal and regulatory requirements. To be effective, Board Members need to be able to work collaboratively with other members and be willing to compromise when necessary.

Board Director vs. Board Member

Here are the main differences between a board director and a board member.

Job Duties

Board directors are responsible for overseeing the entire board and ensuring its success. This includes setting a vision for the board, creating an organizational strategy and leading the selection process for new board members. Board directors often work with other directors to ensure that each department has the resources it needs to succeed.

Board members have different job duties depending on their role on the board. Some roles may include conducting research about the organization’s current status or providing feedback on proposed changes. Other board members act as advocates for the organization, communicating the board’s messages to key stakeholders like donors or the media.

Job Requirements

Board directors and board members typically need a bachelor’s degree in business administration, economics or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many board directors and board members pursue certifications through the National Association of Corporate Directors (NACD) or the Institute of Corporate Directors (ICD). These organizations offer training programs that teach professionals how to effectively govern corporations.

Work Environment

Board directors typically work in an office setting, while board members may travel to different locations and attend events. Board directors often have more responsibilities than board members, such as managing the company’s budget and overseeing major projects. They also spend more time with other executives and employees, which can help them understand how to improve their organization.

Board members usually meet once a month or less frequently. This allows them to dedicate more time to their personal lives. While they may not be able to take off from work for meetings, they may still need to make arrangements for childcare or elder care if they’re traveling for business.

Skills

Board directors and board members typically use similar skills in their jobs, such as critical thinking, active listening and problem-solving. However, board directors tend to have more experience in the field than board members. As a result, they may use more complex skills, such as financial analysis and strategy development. Board members may also benefit from having customer service skills to build relationships with clients or shareholders.

Salary

Board directors can earn an average salary of $108,893 per year, while board members can earn an average salary of $98,200 per year. The average salary for both positions may vary depending on the size of the company, the industry in which the company operates and the level of experience the board member has.