• Who Should Be On Your Board?

    A board of directors can be helpful as your out of home company grows and takes on outside investors.  The board provides advice and accountability.  Here are Insider’s thoughts on a board of directors.

    Smaller is better.  Most groups function best at 4-6 members.  The same goes for your board.   Keep it to less than 9 or you’ll have a committee in which most of the people aren’t contributing most of the time.

    Choose people with expertise which helps you.  That means experts in real estate, data, finance legal and advertising.  Look at the the 2017 Lamar, Outfront and Clear Channel Boards.   Lots of people from finance and media.  Outfront’s board includes someone who’s also run an ad agency and someone who works at Youtube.  Lamar has a board nominee who runs a REIT.

    Don’t stack the board with friends and insiders.  A board dominated by insiders or employees is hardly a way to keep a company accountable.

    Pay your directors.  You get what you pay for.  You should pay your directors their out of pocket expenses for travel to board meetings as well as an amount per meeting.  The public out of home companies pay their directors more than $100,000/year.  Private companies can’t afford this but should still pay something.

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    One Comment

    1. Great insight into the business side of the business. Thank you.