How are board members paid on self funded deals?

by a searcher from Northwestern University - Kellogg School of Management

2 weeks ago

I'm curious how other self funded searchers compensated board managers on SBA deals? 

Annual cash payment? 

1-3% in equity? 

Cash plus equity? 

Is this documented by your attorney in the operating agreement at closing?

1 like
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22 comments

searcher from Escuela de Ingeniería de Antioquia

Hi Chris. You can pay them with equity of 1%- 3% and cash annual bonuses if the company achieve certain goals: Sales or profits. The bonuses are a good incentive if you're team are ambitious. Good luck Chris.

1 week ago | like reply | 1 like

searcher from Northwestern University - Kellogg School of Management

Yes, if taking on investors then that makes sense. You make a valid argument for hiring a coach as opposed to sharing equity.

2 weeks ago | like reply | 0 likes

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