Ask HN: Board Seats and salaries

#1

Post by kcodey » Mon, Jan 21, 2013, 4:03 AM UTC

Hi all,

I was wondering if anyone has any first hand knowledge if VC's or angel investors who invest in your companies, get paid a small salary to sit on your board? I figure if it's a small angel investment or seed round, that no one gets paid to sit on the board, but post Series A, is it unheard of?

Re: Ask HN: Board Seats and salaries

#2

Post by OafTobark » Mon, Jan 21, 2013, 5:44 AM UTC

As far as I know, they get stock (as part of the investment), not salary. Most Series will probably include at least a lead investor on the board.

Re: Ask HN: Board Seats and salaries

#3

Post by relaunched » Mon, Jan 21, 2013, 7:16 AM UTC

It is highly unusual for an early stage board member to take cash out of the business, b/c every dollar is critical early on. However, it's not unusual for them to have travel to board meetings reimbursed. However, it's up to the company to set the policy regarding travel cost, hotel, etc.

It's worth noting that mature companies often pay board members in cash, equity or both.

Re: Ask HN: Board Seats and salaries

#4

Post by kcodey » Mon, Jan 21, 2013, 2:46 PM UTC

relaunched wrote: post #3

It is highly unusual for an early stage board member to take cash out of the business, b/c every dollar is critical early on. However, it's not unusual for them to have travel to board meetings reimbursed. However, it's up to the company to set the policy regarding travel cost, hotel, etc. It's worth noting that mature companies often pay board members in cash, equity or both.

Thanks.. that was my thinking, often larger companies have paid board seats, was wondering if it was the same with start ups.

Thanks!