FAQ

What is the difference between an advisory board and Board of Directors?

Advisory Board – A consulting body hired by the CEO or the executive team to help him maneuver through making the right decisions for the company; thus avoiding unnecessary risks. They do not have any fiduciary or legal responsibilities for the company. They commonly are brought in to advise and help with strategic decisions (legal, financial, marketing, technology, global).

Board of Directors – This board is elected by the shareholders and has a fiduciary and legal responsibility to protect the interests of the shareholders as well as enhance the value of the company. They oversee the financial well-being of the organization and its management, including having the power to remove the CEO, if necessary.

Advantages of both:

• An outside perspective that can produce more innovative ideas

• Access to networks or connections that the company has not had success in getting to in the past

• Mix of seasoned professionals who have run companies and can help the CEO come up with better strategies for rapid growth