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> Posted by Danielle Donza
The Council of Microfinance Equity Funds (CMEF) and MicroFinance Network (MFN) recently surveyed their members to find out whether MFIs are paying the people who sit on MFI boards– and if so, how much.
Some observers argue that the practice of offering payment to board members will ultimately attract members with the wrong motivations. They believe that the “right” board members are willing to serve on the board for free because of their passion for the microfinance mission. In fact, this is often true: many MFIs don’t pay their board members at all – 40 percent and 25 percent, for CMEF and MFN respectively.
However, as the microfinance industry matures, and the responsibilities of governance increase, MFIs need to be prepared to compensate their directors in order to attract highly qualified board members with the knowledge to govern a financial institution well. So, it is not surprising that among those MFIs linked to CMEF and MFN the majority do provide monetary compensation. Read the rest of this entry »
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