What is a fee
A fee is a form of monetary compensation that differs from a salary in the sense that it is of a limited nature or limited to a specific work that is done.
The term is commonly used for payment to so-called liberal professions such as artists and lawyers and for positions such as board work in organisations or companies.
Who can receive a fee?
To be eligible for a fee, certain criteria must be met. The compensation is reserved for specific, often project-based, work. The individual undertaking the assignment bears financial responsibility and must utilize their own resources in the execution of the designated tasks. Compensation is typically determined through a bidding process.
In cases involving board members and chairpersons in a company, the eligibility to receive a fee is subject to specific considerations. It is noteworthy that whether board members receive a fee or not is a decision that falls under the purview of the company’s owners, typically determined during the general meeting.