First off, it is not given that Startup Board members get paid money. Compensation for Board members varies by engagement, stage and reputation of the Board member (e.g. a renowned chairperson). Normally, Board members who are representatives of funds that are invested in the company do not get compensated to serve on the Board. However, it is typical for independent Board members to get compensated for their time and services. Hence, on this page, we try to provide you with compensation benchmarks across different stages.
1. Engagement
The level of compensation as an independent Board member is usually tied to the level of engagement. In the following, you will find a guideline on the different engagement levels.
- Low engagement - Board members are very hands-off, available for infrequent emails or phone calls and (typically) attending quarterly Board meetings in person or on the phone.
- Medium engagement - Board members are more involved and are expected to participate in scheduled conference calls and meetings in addition to attending quarterly meetings in person.
- High engagement - Board members are involved in day-to-day decision-making at the company and can expect to contribute on a semi-monthly basis.
2. Stage
When payment is on the table, it usually looks as follows:
Equity | Cash Component | Exit Bonus | |
Seed Stage | - 0.2-1.5% of the company’s overall shares, 0.75% on average in a seed stage | Rarely the case | n.a. |
Series A | As time goes on, equity percentages will decrease as cash payments begin while equity shares decrease to 0.5% per new board member | EUR 10-30k annually | |
Series B+ | New board members tend to receive less equity, averaging at 0.4% of the company | EUR 25-65k+ annually |