Startup Funding Espresso -- Compensation of the Director
b'Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up the board for a startup, it\\u2019s important to set the compensation policy for the directors. While some candidates will join the board for no monetary compensation, most people will require some compensation. Here are some key points to consider when setting the policy: Tie the director\\u2019s compensation to an evaluation of performance Use equity to conserve cash Vest that equity over time. Use option grants similar to employees which often have a 4-year vesting period Grants are often in the \\xbd% to 1% range of total outstanding shares Consider market rates and keep the compensation within limits Set rules around expense reimbursement Write out the compensation so there\\u2019s no misunderstanding later Include what happens in change-of-control and other situations Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\\u2019s go startup something today.____________________________________ For more episodes from Investor Connect, please visit the site at: \\xa0 Check out our other podcasts here: \\xa0 For Investors check out: \\xa0 For Startups check out: \\xa0 For eGuides check out: \\xa0 For upcoming Events, check out \\xa0 For Feedback please contact info@tencapital.group'