Compensation, investment help establish strong advisory board

A company typically forms an advisory board to gain leadership from experienced executives — either people who have retired from key positions at a competing company or who work in a complementary field. These advisers may have full-time jobs beyond their advisory role at your company and, as a result, are generously providing their time. In turn, it’s standard practice to provide them with some compensation.

Depending on the stage of development and type of business, there are different ways of compensating your board. Some companies are more comfortable offering equity, while others are in the position to offer only cash or some other form of stipend.

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