Fees vs dividends.... those are two different things.

And 'splain what you mean by "cash" payments?  As in folding money?

Directors' fees are an expense to the corp and income to the directors.

Dividends are a reduction in Retained Earnings and income to the shareholders of the C corp.

And please remember that if any of the directors are officers of the corporation , it is wise to look at whether their director's fees should be reported on a W-2 as opposed to a 1099.;