If so, do the options just turn into company ownership and then ongoing distribution checks?
I have been approached to advise companies with this arrangement. In the arrangement I was considering, the options simply turned to ownership but there was an end date by which the distribution had to be paid. Hope that helps!
Answered 8 years ago
If the advisor is willing to accept vested options, and there is no deceit involved, then sure.
Answered 8 years ago
Yes, there are a variety of ways to compensate advisors.
- Vested options or warrants are one option.
- Phantom stock
- You can create convertible debenture with event triggers for payback such as funding events, revenue targets, and more.
You have the flexibility to structure non cash compensation in a manner that works for the company and is still attractive to the adviser.
Happy to answer further questions >>
Answered 8 years ago
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