I wouldn't overthink the Advisory Board structure - here's a Advisory board
agreement template from the web that is solid:
Here's the conceptual Advisory Board guidelines I gave to a company I am
working with as an advisor which is putting one together:
· Professional structure - I think the right professional structure
is empowering for both company leaders and advisors - gives you complete
confidence when requesting support or help, sharing successes or challenges.
· Contractual agreement (to ensure accountability and
professionalism) to articulate:
- Time commitment - 15-20 hour monthly commitment which equates to 4-5
hours a week which I think is very reasonable
- Specifically stated expectations and duties
- Objective basis and process for discontinuing relationship if not
- Non Disclosure agreement (NDA) requirement
· Compensation - common stock options of around .25-2% of company -
no cash - vested over 2-3 years
· Desired expertise & experience
· Good cultural fit - what intangibles you guys really value (e.g.,
fun, positive, humility, etc.)
Hope this is helpful.
I like the FAST template by the Founder's Institute. It's also got a great framework for figuring out what the advisor's commitments should be and how much equity they should get given the stage of your company.