Paying Your Board Isn’t Optional; It’s the Price of Serious Governance

Let’s start with an uncomfortable question:

Would you work for free?

Would you expect your customers to take your product seriously if you gave it away “for goodwill”?

Would you trust a consultant who showed up when they had spare time, but disappeared when things got hard?

Then why do we keep pretending this is acceptable when it comes to boards and advisors?

Because here’s the truth most founders don’t want to say out loud:

If you’re not paying your board or advisors, you’re relying on goodwill - not commitment.

And goodwill is a fragile governance strategy.

This isn’t about money. It’s about value exchange.

This article isn’t really about whether to pay your board.

It’s about something more fundamental:

Every governance role needs a clear, intentional value exchange.

Cash is one form of that exchange.

Equity is another.

Learning, influence, reputation, access - these can all matter.

But “paying it forward” on its own is not a strategy.

And it rarely produces the level of rigour, challenge, and consistency founders actually need as they scale.

Advisory boards: let’s stop pretending they’re different

Here’s the unpopular opinion I’ll happily stand behind:

I don’t understand why anyone expects serious advisory board members to work for free.

If someone is good enough to be on your advisory board, they are almost certainly:

• Time-poor
• In-demand
• Bringing judgement and pattern recognition
• Taking reputational risk by being associated with your business

So what, exactly, are they getting in return?

Too often, advisory boards become:

• A soft holding pen for people you don’t quite want on the board
• A “lite” version of governance with no accountability
• A CV exercise for advisors, not a value engine for founders

If you want real advisory value, you need:

• Clear expectations
• Defined scope
• Regular cadence
• And yes - compensation

Otherwise, don’t call it an advisory board. Call it what it really is: occasional friendly chats with smart people.

A harder truth about “free” NED roles

When non-executive or advisory roles are unpaid, one of three things is usually happening:

1. Someone is doing it for optionality (future upside, access, influence)
2. Someone is doing it for ego or visibility
3. Someone is doing it when they have spare capacity, not when you need them most

None of these guarantee commitment when the business hits turbulence.

And turbulence is exactly when boards earn their keep.

Investor-only boards aren’t boards - they’re oversight mechanisms

If your “board” exists primarily to keep investors comfortable, something is missing.

A properly run board should:

• Help you think, not just report
• Challenge the narrative, not just the numbers
• Hold the business accountable, not just the founder
• Look forward, not backwards

Unpaid, investor-dominated boards often default to:

• Compliance over strategy
• Control over collaboration
• Short-term risk management over long-term value creation

That’s not governance. That’s supervision.

The dangers of not paying - spelled out plainly

Here’s what I see repeatedly when boards and advisors aren’t compensated:

Patchy commitment

Attendance and preparation slide… not maliciously, but inevitably.

Polite conversations instead of hard ones

Unpaid advisors are far less likely to challenge forcefully or stay in uncomfortable tension.

Founder over-reliance

Founders carry more emotional and strategic labour because no one else is fully “on the hook”.

Blurred roles and expectations
Without a formal value exchange, boundaries erode fast.

Difficulty removing people
It’s surprisingly hard to ask someone to step down from a “free” role; guilt replaces governance.

Why this matters particularly for female founders

This issue shows up more often - and more quietly - for women.

Female founders are still more likely to:

• Be grateful for access
• Overvalue goodwill
• Undervalue their own time
• Avoid appearing “demanding”

The result is that many accept unpaid governance far longer than they should even when the business would benefit from professionalisation.

A reframing worth holding onto:

Paying your board isn’t aggressive or entitled.
It’s you taking your business - and yourself - seriously.

Strong governance protects founders. Especially those already navigating power imbalances.

The real question founders should ask

Not: “Can I afford to pay my board?”

But:

“What level of thinking, challenge and commitment does my business require, and what am I willing to invest to get it?”

Because every serious growth decision comes down to this:

• You either pay in cash and equity
• Or you pay later in mistakes, stalled growth, and founder burnout

One is predictable. The other is far more expensive.

If you’re in: how to pay your board properly

If you accept the argument above, this is the execution part.
No drama. No hand-holding.

1. Decide what gets paid - and what doesn’t

• Formal board roles (Chair, NEDs): paid
• Advisory boards with defined scope and cadence: paid
• Informal mentors or occasional chats: don’t dress these up as governance

Clarity here prevents resentment later.

2. Choose the right form of compensation

Most early-stage and scale-up businesses use a mix of:

• Cash - signals commitment and accountability
• Equity - aligns long-term incentives

What matters isn’t the mechanism. It’s that the value exchange is explicit, fair, and agreed upfront.

3. Indicative UK ranges (as a guide, not a rule)

• Non-Executive Directors: £10k–£25k per year at early scale, rising with complexity
• Chairs: £20k–£60k per year at early scale
• Advisory board members: often £3k–£10k per year depending on scope

You’re not paying for time. You’re paying for judgement.

4. Put it in writing

If you’re paying people, you owe it to both sides to be clear.

At a minimum, cover:

• Role and responsibilities
• Time expectations
• Term and review points
• Fees, equity, and expenses
• How someone exits the role

Professional governance deserves professional documentation.

Final thought

If you wouldn’t expect your customers to pay you in gratitude,
don’t expect your board to govern your company on goodwill.

Paying your board isn’t a cost.

It’s the price of building something that’s actually built to last.