Dilemma: def: a situation in which a difficult choice has to be made between two or more alternatives, esp. equally undesirable ones.

The Dilemma

I've often seen boards wrestle with the issue of the meetings fees they pay to members. Their thoughts often go like this:

On the one hand, they say, "My time is worth something. The staff is getting paid for its time. Isn't this just a cost of doing business?" On the other hand, they say, "It's an honor and an obligation to serve my constituents, so should I be taking dividends from shareholders, or money for services from our users or customers?"

No easy choice. Not when you put it that way.

How you should really think about it

The fundamental axiom that underlies all human interaction is that we must be in exchange, for all parties to continue to support is the status quo.

Let me explain the term, in exchange:

Think of it in terms of your marriage or your job. You will be content in those relationships as long as you are receiving what you perceive you are contributing. That is, you are in exchange.  When that is not the case, the relationship suffers.

So, are you in exchange with those who have elected you to represent their interests? In other words, are you providing as much value as they're paying you for.

The test is that you can look in the faces of those who elected you, and say, "I am worth it to you."

Pitfalls

Too often, I see boards look at the meeting fee dilemma, not from the point of view of being in exchange with those people who got them there, but rather with what the staff is paid, or what those on other boards are paid. That kind of thinking only causes more confusion. Hence the dilemma.

Another problem I often see, is meeting fee creep. Meeting fee creep happens when fees go up simply because other costs go up. It's not associated with board members increasing their value to the organization. And it's that value that should determine the fee.

A Special Consideration: No Monetary Compensation

If you're not being paid because you're a member of a non-profit board that pays no fees, are you satisfied with the forms of compensation that you do get? Such things as seeing clients gain from your services, or seeing the community improve?

Or, if you're not being paid because your organization is in a startup mode, for example, are you ok with your situation? Is there a commitment that you will be paid - that you will be back in exchange - when financial conditions warrant it?

In either situation, if you don't feel that you're truly in exchange, the chances are good that the dynamics of board - management relationships will suffer.

Remember, being in exchange is the operative term in any situation, whether we're talking about monetary, or other forms, of compensation.

Number and length of meetings not necessarily indicators

I counsel clients to remove the reward for the number, or length of meetings. Your value is not measured in time, but in impact. In fact, effective boards that truly add value, often consume less time than those that contribute little or nothing. Consider an annual or monthly fee to eliminate the incentive to have unnecessary meetings or to prolong them.

Bill