How Much Should You Pay Someone You Ask to Join Your Board of Advisors?

“Here are some ranges based on sizes and stages of companies:

  1. Startups – Almost always equity compensation. Companies often set aside 2-6% of the equity, shared amongst key board members who can help them make inroads in specific ways and scale the business.
  2. Small Private Companies – Either a per-meeting fee, an annual retainer, and/or a small equity grant. Average annual compensation per advisor generally ranges from $1,000-$6,000.
  3. Middle-Large Private Companies – Either a per-meeting fee and/or an annual retainer. Average annual compensation per advisor generally ranges from $12,000-$26,000.
  4. Public Companies – Includes board retainer, fees and stock options. Average annual compensation per advisor generally ranges from $51,000-$146,000.

…If your company is a startup and/or strapped for cash, 1/2 of 1% is a good starting point to offer one advisor. If your advisor has the right insights and connections, this will be the “best money” you have ever spent.”

https://www.advisorycloud.com/board-of-directors-articles/how-much-should-you-pay-an-advisor-for-your-company

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