Forming a Board. Part 2

Compensation
You can expect to offer different compensation levels to different types of board members. Directors from your VC firms typically get no compensation for sitting on the board — they’re there because they are investors in the company. But outside board members receive director’s options, which typically add up to about one-fourth to one-half of 1 percent of the company’s stock (see “The Equity Equation”). (more…)

Forming a Board. Part 1

What to look for in your company’s directors.

At an early-stage Internet company the board of directors’ role is to develop “economy of motion” for the company. The directors ensure the company is using the right processes for engineering, marketing, and sales, so the entrepreneurs can focus on scaling the business. And the board helps keep the business focused on the core issues that will drive its success, often steering a lot of a startups’ business strategy. (more…)