Board Seat
A position on a company's board of directors, providing governance oversight and strategic decision-making authority.
Definition
A board seat is a position on a company's board of directors, which is responsible for overseeing the company's management and making key strategic decisions. In startups, board seats are often allocated to founders, investors, and independent members based on ownership stakes and investment terms.
Types of Board Seats
Founder Seats
Seats reserved for company founders
Investor Seats
Seats allocated to major investors
Independent Seats
Seats for independent directors
Responsibilities
- Strategic planning and oversight
- CEO hiring and performance evaluation
- Approval of major decisions and transactions
- Risk management and compliance oversight
- Financial reporting and audit oversight
Real-World Example
Series A Board Composition: 5-member board
• 2 founder seats
• 2 investor seats (lead investor + existing investor)
• 1 independent seat