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Q&A Forum

Given the breadth of Company Sizes Represented Here...

How many of you actually have a real Board of Directors or a Board of Advisors (yes there is a big difference, but a BOA usually preceeds a BOD).

Can you list BOD/BOA and approximate dollar size.

Example:  I was the CFO of a $35M firm that had no BOD or BOA.  The reasons could fill a psychology textbook.


Blair Cook CPA CPA MBA
Title: Corporate Director and Professional Educ..
Company: Clarke Inc. and the Finance Learning Aca..
(Corporate Director and Professional Education Innovator, Clarke Inc. and the Finance Learning Academy) |

I'm involved with three companies (all small cap public companies) with sales between $75 and $300 million. We have 5 directors each of these Boards. When a company work well and you have the right executive team, the Board acts like a sounding board for the executives and discussion focuses on strategy and ways to enhance shareholder value. When the company struggles, the Board can easily get bogged down in challenging management to manage the business better. It's amazing how many companies are poorly managed. If executive are talking strategy before their internal house is in order, that is never a good sign. Finding the right board members to sort out what type of company you've got and how they can best contribute is the key.

Ron Bowker
Title: 0
Company: Novotus
(0, Novotus) |

I like your distinction between the BOD and BOA Wayne. I have typically worked with companies under $30M and more often than not, the successful ones are the ones that have at least a BOA. I feel, if done right, a BOA can add much needed knowledge and accountability to the management/owners of the business.

Therefore, from my experiences, I would recommend that a company at least forms a BOA when they are between $8M to $10M in annual revenues.

Robert Honeyman
Title: CFO
Company: Advanced Predictive Analytics
(CFO, Advanced Predictive Analytics) |

The question rather depends on the overall goals of the company. If the company is a startup with the goal of going public or being acquired, it should have both a BOA and a BOD almost from the start. If the company is a family-owned firm that is happy doing what it's been doing for decades, there's little need for either, even if the firm is doing $100 million in revenue.

This question suggests to me a really good line of inquiry if one is interviewing with a new firm. If the firm positions itself as seeking high levels of growth but has no BOA or an incestuous board, that might suggest the company could be heading for shoals.


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