26 Startup boards: The good, (how to prevent) the bad, and the ugly

This chapter covers

What is the typical makeup of a startup board of directors?
In the startup ecosystem, what is the board’s role?
How should you create meetings with perfect agenda, presentation, and post-meeting protocols?

If you are the CEO, the board is your boss. Regardless, the board is the ultimate authority on all decisions the company makes, whether explicitly or via proxy to the CEO. The board has huge responsibilities to protect investors’ interests, approve senior hires, decide on compensation for the CEO and other senior managers, weigh in on financing and acquisitions, and handle a myriad of other things every company has to deal with. In this anecdote, you will learn how the board of directors compensates and manages the CEO. You will see how a board evolves, growing in size and the formality of its oversight, alongside the company as it too evolves. You will also see detailed suggestions on how to construct a board meeting presentation.

26.1 Board of directors’ role

26.1.1 Fiduciary

26.1.2 CEO’s boss

26.1.3 Strategy

26.1.4 Advice and counsel

26.2 Board of directors composition

26.3 Board of directors meetings

26.3.1 Meeting frequency

26.3.2 Voting: One dollar or one person per vote?

26.3.3 The problem with big boards

26.4 Presenting to the board of directors

26.4.1 Prep in advance, and socialize it

26.4.2 Post-meeting closure

26.5 The moral of this anecdote