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Leadership Development: What's the right stock compensation package for an advisor board?
JF
JF
Joey Flores, Startup CEO/CMO/CPO with 20 Years Experience answered:

I had a fantastic board of advisors with some heavy hitters. Unless you know for a fact that someone will be very involved or they plan to introduce you to a ton of clients, partners or investors, the standard is pretty much 0.5%.

The most important thing I learned was that the people who wanted more ended up being the least helpful. Two people on my BOA negotiated for 1% and, although one of them provided a catalog of content that was super valuable, he was difficult to get much out of after that and not more valuable than the many people who accepted 0.5%. My most valuable advisor would not accept equity until we basically forced him to.

Look for people who dive in and help without any incentive. They should be doing it because they like you and think your business is super interesting. If they are in it for the equity, run the other direction.

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