If it's a VC-backed company, the board member merely represents the VC fund and wouldn't personally enjoy the entire upside of the equity the fund owns. I think

If it's a VC-backed company, the board member merely represents the VC fund and wouldn't personally enjoy the entire upside of the equity the fund owns. I think it's possible that they would still take $500K risk free today over the value of future potential compensation that might trickle to them. However, they also don't sabotage the company since word would get around that they or the VC they represent are terrible board members that sabotage companies. Besides reputation damage, they can also be sued by the shareholders for failing to uphold their fiduciary duty. It's similar to why the CEO doesn't just pay themselves their entire series C, close the company, and retire (assuming the bylaws allow the CEO to pay themselves).