To Pay or Not To Pay? Board Remuneration

This is a defining question that increasing numbers of directors of community businesses – or not-for-profits – are thinking about and discussing as boards, as the intensity of risk and responsibility is balanced against the rewards.

It is estimated that there are some 700,000 community businesses throughout Australia. A research project undertaken in 2001 by the academics, Peter Steane and Michael Christie entitled, Non Profit Boards in Australia: A Distinctive Governance Approach, has determined that between 12–15 per cent of directors of community businesses are remunerated. Typically these are directors of companies limited by guarantee which operate non-religious or charitable community businesses, such as Group Training Companies, Industry Superannuation Funds or Employment Services.

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