How Different Board Structures Support a Growing Company
Startups use different governance structures depending on their stage, ownership, and the type of support they need.
Three common setups are an Advisory Board, a Board of Directors, and an Operator Board.
Each serves a distinct role - from informal sparring to formal oversight to targeted execution support - and they can function side-by-side as the company evolves.
| Dimension | Advisory Board | Board of Directors | OPERATOR Board |
|---|---|---|---|
| Purpose | Provides informal guidance and perspective to the founder. |
Offers formal oversight and approves strategy, budgets, and appointments. |
Supports the founder on specific near-term priorities and execution tasks. |
| Composition | Selected for broad experience. Usually informal and flexible. |
Formally appointed members, often including investors and independents. |
Assembled around current operational needs with relevant expertise. |
| Engagement | Meets periodically. No decision-making authority. |
Structured meetings with formal responsibilities and documentation. |
Engages more frequently on defined tasks or focus areas. |
| Structure | Light structure. Founder decides cadence and format. |
Follows formal governance rules, procedures, and reporting. |
Organised around specific goals. Cadence depends on operational demands. |
| Focus Areas | General strategic topics, industry insight, and founder sparring. |
Governance, capital allocation, risk, performance monitoring. |
Defined operational priorities such as sales, product, or partnerships. |
| Compensation | Often voluntary or compensated symbolically. |
Typically compensated through fees and/or equity. |
May receive equity or warrants tied to participation agreements. |
| Adaptability | Can change over time but often remains stable. |
Changes follow formal appointment or election processes. |
Adjusts based on evolving priorities. Members rotate as needs shift. |
| Value Delivery | Provides input, perspective, and introductions. |
Ensures accountability, governance quality, and long-term direction. |
Contributes to progress on specific operational goals. |
