I am currently evaluating a deal in which the owner is willing to spend a year or two as a consultant to help build a new revenue stream for the business that would benefit from his niche production experience. To align incentives, his pay would be more closely tied to profit-sharing than a high hourly rate, and he would play a key role in the logistics of a new service we provide to clients and onboard someone to replace him.

Has anyone done something similar? I want to ensure that while he stays as part of the business, he is compensated if this service succeeds and motivated accordingly. It would be great to learn about any clauses others considered for this type of compensation.