advisors Archives - Launchopedia

Advisory Board compensation is an important consideration. How much is right? Does this change over time? Is there a vesting period?

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Vesting

A process in which you “earn” your stock overtime. The purpose of vesting is to grant stock to people over a fixed period of time so they have an incentive to stick around. A typical vesting period for an employee or Founder might be 3 - 4 years, which would mean they would earn 25% of their stock each year over a 4 year period. If they leave early, the unvested portion returns back to the company.²

Advisory Board

A group of external advisors to a private equity group or portfolio company. Advice provided varies from overall strategy to portfolio valuation. Less formal than a Board of Directors.³

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