It has been my experience that advisory boards are made up of people (often more experienced individuals) who have a genuine interest in the owner or the business and are not motivated to serve for compensation. Nonetheless, I recommend, at the least, reimbursement of expenses and a flat fee for attending a board meeting.
Given the motivation of the advisory board members, the meeting experience should be rewarding for them. Board members enjoy hearing about the business situation in realistic terms, receiving recognition for prior advice, and understanding how they can help with current or anticipated problems. Board members should be encouraged to communicate with owners and officers at time other than the advisory board meetings.
Often the greatest compensation for an advisory board member is to be perceived as being helpful and an active part of the progress of the business. If sought, their response often will be very valuable.
It is a mistake to appoint an advisory board and then not seek the advice of its members. Most owners have found that an ignored advisory board is a nuisance rather than an aid, regardless of the compensation.
