Ask HN: Should board members also be investors/shareholders?
It seems that when a major investor provides cash they also put a director on the board.
Does this create a conflict of interest?
e.g. This HBR article alludes to Enron's board still buying shares at the time of Enron's demise: https://hbr.org/2002/09/what-makes-great-boards-great
Should you have board members without any investment? Does this help with their role as an independent source of advice & direction, or does it end up with them being disassociated and uninterested?
Is it an expectation that board members, when appointed, should be provided with stock opportunities?
What's your experience been? I would like to hear the viewpoints of both founders, investors and board members.
Do you have any good articles, books or reference material on this subject? Yes. It's called having skin in the game. It aligns financial incentives with other shareholders.