We’re often asked “What do you do when you put someone on the board of advisors for your company? How much stock do they get? What do you expect from them?” For most board of advisors, getting 25%-50% of the stock of the company is enough for them to get heavily involved in your company. If they get more involved, you give them more stock. They earn that stock in 12-18 months in most startups. Sometimes that period of time is a little bit longer. If they’re not involved that whole time, they don’t get all of their stock. Of course they almost always get founder’s stock at a very, very low price. There are some tax issues involved that you want to make sure you go through with your tax people when you are handing out advisors stock.
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