Both private company board service and public company board service come with a great deal of responsibility. In each instance, directors will be expected to review data and reports, attend meetings, serve on committees, and much more. In most cases, the experiences of serving on these two types of boards will be similar. There are, however, a few key differences that distinguish them.
Private companies come in many different sizes. You could have a board for a private company that earns $2 million a year or one that earns $120.4 billion a year—like food and agricultural conglomerate, Cargill. Oftentimes, private companies begin as family-owned businesses, which can heavily influence the make up of the board and how it operates.
For instance, in a family-created business, the CEO could also be a major shareholder. In a situation like that, the board would operate more in an advisory role since firing the CEO would be nearly out of the question.