How do you pay an early stage board?

By Dave Berkus

Give one percent equity to each outside board member vesting over four years of service.

Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members.  Here is my best advice, based upon many boards and many years.  Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service.  You do not pay professional investors who are serving on behalf of an investment company or VC and paid by that company.… Read the rest

Can you list ten buyers for your business?

Most entrepreneurs and certainly all investors would like to see “a positive liquidity event”  (a good sale of the business) someday.  Boards of directors should be aware that one of their duties could be to evaluate offers from potential buyers, or even to initiate efforts to sell the business for the benefit of all stakeholders.

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