There's a shortage of legitimate hedge fund [0] directors these days. Logical candidates would come from financial services firms, which brings into play many potential conflicts of interest. Of course, given the market right now, the job is a lot tougher than it used to be. Many shun hedge fund director jobs like they carry the plague of Sarbanes-Oxley. Unsurprisingly, Alpha notes that director's fees have soared as supply has flagged. Some make up to $25,000 a year. That's up from about $5,000 a few years ago. Interestingly, there are a few director-for-hire offshore outsourcers out there. One Cayman Islands firm has about 30 staff members who perform board-like duties for funds, Alpha notes. There are probably a few Moms and Pops who sit on boards as well.  

For more:
- here's the article [1]