Aufsichtsrat & Beirat: Getting on a Corporate Board – The American Way for C-Level Executives

A blog-post by Elisabeth Constantin .

Someone once said that corporate Board Directors are like a secret society. You don’t hear or see much of them, but at the end of the day they have a massive societal influence in what we eat, consume, how we spend our time, and how much we pay for all of it.

C-Level Executives at the Top of their Corporate Careers: The Final Frontier?

For many senior-level executives, serving on a corporate board represents the pinnacle of their distinguished careers. Board Director positions are highly coveted, o?ering a range of benefits including enhanced prestige, access to influential networks, the opportunity to lead without being in the operational weeds, and substantial financial rewards.

Expanded focus on boardroom diversity and evolving governance needs have increased opportunities for executives seeking board positions in parallel to their regular careers. As boards aim to stay agile and e?ective, seasoned leaders with deep functional expertise find more avenues to contribute at the board level earlier than previous generations. This article shines a light on how executives strategically and actively carve out their board careers in the United States during their working years.

How It Used to Work for C-Level Executives

Historically, serving as a Board Director was a common post-retirement role for former C-level executives and CEOs; leveraging their extensive boardroom exposure from their corporate days. While this traditional pathway still holds value, the landscape has significantly shifted over the past decade.

Previously, the typical route involved a C-level executive from a public company joining a board either upon retirement or, if company policies permitted, while still employed. However, emerging generations are taking a di?erent approach. Younger leaders, who have witnessed the decline in corporate loyalty with their parents’ generation, are becoming more entrenched in the gig economy and are therefore generally more pragmatic. They are more focused than ever on diversifying their executive portfolios, developing multiple income streams, and increasingly unwilling to conform to traditional expectations around ‘putting in their time.’

Skills That Pay Dividends to C-Level Executives

While requirements can vary and the traditional qualifications of being a distinguished CEO, CFO or otherwise a C-level executive are still valued, a highly competitive board profile generally includes expertise in several key areas: finance, strategic P&L responsibility, driving growth at scale both nationally and globally, economic turnarounds, mergers and acquisitions (M&A), and initial public o?erings (IPOs). Additionally, leaders with deep functional expertise, especially in fields such as Technology, Risk, and Data, are increasingly sought after as boards seek specialized functional knowledge for informed long-term decision-making.

Pre-Search: Preparation and Learning for possible positions in Aufsichtsrat & Beirat

Before getting involved, it’s crucial for candidates to understand what they bring to the table and identify the types of boards and companies that will align with their expertise. Additionally, resumes, biography, and LinkedIn profile should be professionally overhauled and aligned to highlight suitability for board service, as the requirements at this level di?er.

It’s also beneficial to gain a thoroughly deeper understanding of board operations and governance. Beyond the available literature on the subject, many U.S. universities and Ivy League schools o?er board readiness programs covering the essentials. Organizations like boardmember.com and nacdonline.org also provide reputable, a?ordable, and credentialed Board Director Fundamentals programs that help leaders prepare for the journey ahead.

Available Options and Routes to the Board

Board service truly represents a next-level career echelon, so for leaders who haven’t held a public company C-level position, securing their first paid board seat often requires a gradual process of working their way in and up.?In the United States, it typically takes between one and five years to land a first paid board seat. This extended timeline is one reason executives begin their board search early, to avoid the ?retirement label‘ which can further delay the process and weaken marketability.

Executives have various board options that can pave the way for future opportunities. While public company boards are the most lucrative and prestigious, family businesses, smaller firms, mid-sized companies, and startups often offer valuable engagement and learning experiences, especially for those willing to take a more hands-on approach to gain experience. Private equity (PE) and venture capital (VC) boards, as well as advisory and non-profit boards, offer additional avenues to explore.

Non-profit Boards

Although some may not view advisory or non-profit boards as high ROI starting points, they offer essential exposure to boardroom dynamics, particularly for younger executives without a public company C-suite background. Non-profit boards should not be underestimated as valuable learning experiences. It’s important, however, to consider the hierarchy within the non-profit sector—high-caliber organizations like Habitat for Humanity, the United Way, and The American Red Cross, etc. offer more gravitas compared to lesser-known entities. It is not uncommon that serving on such boards or committees, especially audit and finance committees, opens doors to further opportunities due to access to an elevated and more prestigious network. Often times, once the first seat is secured, Directors get tapped on the shoulder for additional engagements.

A less known path is the promotion route in private companies. With the American employment market continuously being categorized as a ‘war for talent’, companies continue to struggle to retain talent, especially at the top level where promotion opportunities run thin. Especially smaller and midsized companies come to utilize board placement as an executive retention strategy, giving executives the opportunity to negotiate a board credentialing program into the package and make their first steps into this world from that angle.

New Position in Aufsichtsrat & Beirat: Starting The Search

While board placement services can assist in securing the first board seat and may be a viable choice especially for those looking to get on foreign company boards, it’s important to note that at a domestic level 80% of first-time U.S. Directors obtain their initial position through their first and second-tier networks. This highlights that the process of ‘working your way in and then up’ is truly a labor of love and an extensive process that requires patience and consistency.

For non-public company C-level leaders with competitive and relevant skills, the challenge often lies in access and visibility. For those who choose not to use a placement service, proactive networking is essential. Relying on chance alone is unlikely to yield results. It’s crucial to cast a wide net and inform your network—including current and potential board members, executive and board recruiters, and fellow C-level leaders — about your interest. Building new connections and actively expanding your network within the boardroom sphere is key.

Conclusion: Keeping Learning Front and Center

For those C-level executives who have the stamina to stay consistent in their networking and search activities, landing their first board engagement isn’t a matter of ‘if’ but ‘when’.

When the time comes, it is advisable to evaluate the opportunity for the right fit before committing. Is it the right organization for me? Do I have the time to do what is being asked of me? Is the group right?

The most important question is probably whether a candidate feels that they can make a di?erence. Outcomes matter, and just like in regular careers, Directors will be asked for it in future interviews when the next door opens. For example, how they were able to move the needle for the organization. Or how they make the board itself more e?ective. Since performance matters, safe-guarding the ability to deliver matters greatly.

Lastly, Board service is fundamentally an act of service. For new Directors, prioritizing ?learning versus earning‘ is crucial as they begin their journey and responsibility to impact organizations and consumers today and for years down the line.

Auf der Website von The Boardroom finden Sie eine deutsche übersetzung dieses Artikels: Aufsichtsrat & Beirat: Der amerikanische Weg in den Vorstand für C-Level Führungskr?fte

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The first publication can be found at www.topmanager-blog.de

About the Author

Elisabeth Constantin is the owner of Abreo Executive Services. Based in Nashville, TN her executive transition and outplacement services firm focuses on market re-entry support and board readiness for the North American market. Her firm’s pedigree includes Director, VP, and C-level executives from companies including Goldman Sachs, Boeing, Visa, KFC, Walmart and other Fortune-ranking organizations. www.theabreofirm.com