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- Compensation for Advisers Board 3 answers
I'm assembling a board of advisors for a brand new company. I'm thinking of gathering five individuals and paying them 2% each for a total of ten percent. This ownership stake would vest fully after 2 years. Since this is a private company and is probably not going to ever go public, I am not sure what to call this ownership stake. Is it options? Stock? Equity?
Also, if I create a cliff of 12 months, that means that someone cannot excercise the vested portion for 12 months. If one of the BOA decides to excercise their "option, stock, or equity" how do I calculate this? Is it based on revenue at the moment? Is it based on net revenue at the moment? Is there something standard?