Board Management · Advisors

What is the best structure for board member roles and compensation?

Lee Poskanzer President and Founder at Directive Communication Systems

November 10th, 2014

What types of compensation do you offer a startup's Board members? It is understood that they get some equity, but how's it managed and what is the basis for individual performance recognition? What expectation of commitments are standard? Do you offer finder's fee for Board members when the introduce investors? Or do you consider this an element to the roles and responsibilities.

Corey Blaser Sailor. Mormon. Entrepreneur.

November 10th, 2014

We offered our board 1% vesting options and reasonable expenses. Each month we give them between one and three responsibilities that we need accomplished and hold them to it. They are things we need accomplished within their networks, specific knowledge deliverables, etc.

This is basically of the way our contract is set up. It is a good start if you don't have attorneys yet. FAST

Lee Poskanzer President and Founder at Directive Communication Systems

November 10th, 2014

Do you offer a finders' fee if they bring an outside investor to the table?

Lindsay Marles

November 10th, 2014

What Corey is saying is pretty much in line with what I have heard as well. I am just now setting up my board and nothing has been finalized, but that is similar to what I plan to offer.