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Business Advisory

Can a company pay an advisor via vested options if there is no plans to sell the company?

If so, do the options just turn into company ownership and then ongoing distribution checks?

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Answers

Joanne Sonenshine

Partnership & collaboration facilitator

I have been approached to advise companies with this arrangement. In the arrangement I was considering, the options simply turned to ownership but there was an end date by which the distribution had to be paid. Hope that helps!

Answered over 9 years ago

Todd Mortenson

Venture Growth

Yes, there are a variety of ways to compensate advisors.

- Vested options or warrants are one option.
- Phantom stock
- You can create convertible debenture with event triggers for payback such as funding events, revenue targets, and more.

You have the flexibility to structure non cash compensation in a manner that works for the company and is still attractive to the adviser.

Happy to answer further questions >>

Answered about 9 years ago