tion. However, I suggest the ethic of service is equally, if not more, rewarding to many of us.
Eliteness motivation: There is an eliteness pattern of identification with successful organizations. In a social-economic sense, boards can have far- reaching power. By their approval or disapproval, they direct flow of capital and start new businesses.
The ethical algorithm: Ethics in corporate governance implies a process of deliberation and debate among fellow directors and advisors who share concerns for the social consequences and social fabric. Great satisfaction can be derived from developing an ethical algorithm or pattern for a family company.
The ego factor: This is one of the few elements of advisory directorship that can grow without nourishment. However, serving as advisor to an effective board can provide a form of self-confidence, a satisfying sense of identity, and a measure of power to one's psyche. The social networking benefits of advisory directorship can share rewarding experiences and contacts both inside and outside the boardroom.
The rituals and ceremonials: We all like parades, parties, and performing. Being privy to boardroom drills can be very satisfying to some persons.
Team play: Peer acceptance on a family board "team" gives many of us a social contract with interesting persons we might not otherwise have a chance to work with or meet. It is rewarding to be part of an effective governance team.
Perks and pay: Pay for giving advice and being accountable in a boardroom can be significant. Advisory director compensation is made up of not only the psychic rewards previously listed but real income in the form of fees and of indirect income in the form of perquisites.
To conclude, advising a family business board contrasts in many ways with service on a public company board. The difference in governance focuses on the special sensitivities required of an advisory director to face the issues, dilemmas, and emotional climate that often accompanies family company boardroom service. While the human scale and tenor of a family-controlled board is company-specific, there can be great opportunity to advise the family company and its owners responsibly. The rewards of service are there if you can remain detached and professional in offering your personal contribution to making the board and management more effective.