Yes, depends on the case. The structure (advisory cash, equity, observer rights, formal NED appointment) gets shaped to what actually fits the operator board. Most board-level work starts as advisory and converts to a more formal seat over six to twelve months once both sides have visibility on fit.
The pattern that works: a six-month strategic engagement establishes the cadence, builds the relationship with the operator team, and proves the value of the operator-side perspective at board level. From there, formalising as a NED or board observer is a natural extension. The wrong pattern is taking a NED seat cold on a new operator relationship; the work is too central to the operator to do well without the prior operating-relationship context.
Compensation structure varies: pure advisory cash works for some boards, equity arrangements with vesting for others, formal NED appointments with director-level compensation for the most structured cases. The conflict-of-interest discipline applies regardless of structure: any potentially competing engagement gets disclosed before the seat is taken, and any new engagement during the seat tenure gets disclosed before the engagement letter is signed.