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Ask HN: Should board members also be investors/shareholders?

2 pointsby sprocketonlineover 8 years ago
It seems that when a major investor provides cash they also put a director on the board.<p>Does this create a conflict of interest?<p>e.g. This HBR article alludes to Enron&#x27;s board still buying shares at the time of Enron&#x27;s demise: https:&#x2F;&#x2F;hbr.org&#x2F;2002&#x2F;09&#x2F;what-makes-great-boards-great<p>Should you have board members without any investment? Does this help with their role as an independent source of advice &amp; direction, or does it end up with them being disassociated and uninterested?<p>Is it an expectation that board members, when appointed, should be provided with stock opportunities?<p>What&#x27;s your experience been? I would like to hear the viewpoints of both founders, investors and board members. Do you have any good articles, books or reference material on this subject?

1 comment

grizzlesover 8 years ago
Yes. It&#x27;s called having skin in the game. It aligns financial incentives with other shareholders.