When the new CEO joins, it is often time to re-evaluate the capabilities and the contribution on the part of Board members. If a Board has nine members, then usually three will be up for re-election each year, so the Board will never lose the majority of members in any given year. The CEO reports to the Board while the Chairman of the Board sets and controls the agenda. If an individual is the Chairman of the Board and the CEO of the company, then that person sets the agenda for the Board meetings. With a small company, the Board usually consists of the founder, the CEO, and three venture capital firms.
Compensation is such a hot issue in today's market.
Option grants are also offered and will vary widely depending on the size of the company. In the situation where a director joins the Board of a start-up technology firm that requires a high level of involvement, the director will typically be offered a significant option grant. In addition, the company also covers individual expenses, such as for travel. Generally, control is synonymous with ownership. Because of certain realities, one director may have a bit more control, but at the end of the day, each has an equal vote.