Compensation for independent board members?

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February 12, 2018

by a searcher from Harvard University - Harvard Business School in Minneapolis, MN, USA

Hi all, I'm curious to know how folks compensate their independent (i.e. non-investor) board members. Is it cash, equity, or a mix of both? One data point I saw was $20K/year plus a quarter point of equity.

Thanks for any input.

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Reply by a searcher
from University of Worcester in United Kingdom
Patrick, I would suggest that it will come down to what value and credibility an individual advisor will bring. I've paid $50k - $100k per year + equity for a great advisor. The difference between an OK or great advisor can mean the difference between getting an investor to write the cheque or closing the deal. Pay as much as you believe they are worth.
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Reply by a searcher
from Hong Kong University of Science and Technology in Miami, FL, USA
This is a great question - I've been wondering the same thing. I'd like to add to this by asking what the compensation is PRE-ACQUISITION to have someone be an advisor before the buyout is identified; too.
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