When is it ok to be on the board of directors of a private company when you're a banker?

I know that most people with that responsibility are almost always senior (MDs) bankers.
Is that a written rule though? Like would an associate or VP get hell for it/get fired?

note: private companies

thanks!

 
Best Response

Get it cleared with your bank. 99% of the time they won't care and will just make you sign some paperwork, but this is a serious issue and can cause you to be blacklisted if you don't go through the proper channels. Even your licenses require you to disclose any corporate officer positions you have before taking the tests.

DO NOT go behind your bank's back on this, it can cost you your job, your licenses, and even land you in prison.

I'm on the board of a small company, have several side 'jobs' and will be starting a charity next year, and have had to sign disclosures and have compliance/legal approve them. It's harder to do work for another company (compliance denied my request to do part time ER at another firm earlier this year) but the consequences are much more severe: you can be prosecuted for this.

DISCLOSURE: I'm in AM, and the company I serve on is in an unrelated industry. Even so, I had to wait until it was cleared and even had to delay taking my license exams until compliance OK'd it.

The best way to approach this is to just ask someone. "Hi, company XYZ has offered me a position on their board and I'd like to accept. Who do I clear this with here." Anything else will get you in serious trouble unless you're leaving your current job very soon (as in a few days / weeks). If your bank declines you, then you need to consider why and consider if they're helping your career or not, but it's very likely they'll want you to accept...and everything after that is red tape.

Congrats on the offer and good luck. Working on a BOD is a great experience and resume builder, and will open up many doors for you. Let us know how you do.

Get busy living
 

If this is your first time on a board, I'd make sure to be prepared. I'm not sure what it's like in America, but in Australia, if you are a Director and are found to allow the company to trade while insolvent, then your personal assets could be exposed (even if you're seen as a "shadow director" or someone that gives directions/makes decisions).

Consider your role as a director carefully and whether it is actually beneficial and whether you can pour in the relevant amount of time to help the company grow and provide adequate oversight to ensure the company complies with the law.

 

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