{"id":278770,"date":"2025-02-28T06:59:00","date_gmt":"2025-02-28T14:59:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=278770"},"modified":"2025-02-28T06:59:00","modified_gmt":"2025-02-28T14:59:00","slug":"whats-the-payoff-for-being-on-an-advisory-board","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=278770","title":{"rendered":"What\u2019s the Payoff for Being on an Advisory Board?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Welcome back to the Thelander Digest for Investment Firms. Many of our readers are busy on boards or compensation committees for their portfolio companies so we recommend subscribing to our&nbsp;<a href=\"https:\/\/jthelander.com\/newsletter-archive-private-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">Private Company Digest<\/a>&nbsp;for additional insights pertinent to your portfolio companies.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We understand the value of both being on a board, providing crucial strategic guidance, industry expertise, and valuable networks to portfolio companies as well as the value of having an advisory board member, who serves as an indispensable partner in steering investment firms towards smarter decisions and enhanced returns. &nbsp;<br>We\u2019re excited to announce the release of our inaugural report on advisory board member compensation &#8211; inspired by a client inquiry. If there is a question or job title you&#8217;d like to be included, send us an email or respond to this digest.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s dive into the compensation options for advisory board members. These roles can be remunerated through various combinations, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual Cash<\/li>\n\n\n\n<li>Annual Cash &amp; Annual Carry<\/li>\n\n\n\n<li>Annual Cash &amp; One-Time Carry<\/li>\n\n\n\n<li>Annual Carry<\/li>\n\n\n\n<li>One-Time Carry<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The predominant method of compensation is annual cash only. The other frequent compensation is&nbsp;one-time carry. The other most popular option is the combination of annual cash and one-time carry.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/c047e95d-4c6f-b3ef-078d-8eafb89f457b.png\" alt=\"Advisory Board Member Compensation\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Table 1<\/strong>&nbsp;looks at advisory board member compensation. We see the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Median Cash Compensation:&nbsp;<\/strong>$40,000<\/li>\n\n\n\n<li><strong>One-Time Carry:&nbsp;<\/strong>0.375%<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/92afb4a8-cac6-9c5e-ee83-ad92e7822fa5.png\" alt=\"What is the vesting schedule for advisory board carried interest?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 2<\/strong>&nbsp;looks at the vesting schedule for advisory board carried interest.&nbsp;We see the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Vesting Period for Advisory Board Members:&nbsp;<\/strong>Most commonly around 5 years.<\/li>\n\n\n\n<li><strong>Comparison with Investment Professionals:&nbsp;<\/strong>Vesting period for advisory board members is shorter compared to the 8 to 10 years for investment professionals.<\/li>\n\n\n\n<li><strong>Importance of Vesting:&nbsp;<\/strong>Ensures commitment and aligns the advisory board\u2019s interests with the firm\u2019s strategic goals.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s the bottom line?&nbsp;<\/strong>Effective implementation of an advisory board is crucial, and getting the compensation right is key. To explore our platform and access a subset of compensation data for free, participate in the&nbsp;<a href=\"https:\/\/survey.jthelander.com\/surveys\/2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thelander-PitchBook Investment Firm Compensation Survey<\/a>. This will grant you 12 months of complimentary platform access.&nbsp;Plus, by participating, you\u2019ll secure discounted pricing for full access, should you wish to obtain the complete advisory board member report for your firm.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For current paid subscribers interested in the full report, please respond to this email, and a Thelander team member will contact you directly. If you\u2019re considering subscribing and wish to learn more, we invite you to schedule a call or&nbsp;<a href=\"http:\/\/calendly.com\/morganthelander\" target=\"_blank\" rel=\"noreferrer noopener\">demo<\/a>&nbsp;with us.<\/p>\n\n\n\n<p class=\"btn-post wp-block-paragraph\"><a href=\"https:\/\/survey.jthelander.com\/surveys\/2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Participate in the Thelander-PitchBook Investment Firm Compensation Survey For More Compensation Data<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome back to the Thelander Digest for Investment Firms. Many of our readers are busy on boards or compensation committees for their portfolio companies so we recommend subscribing to our&nbsp;Private Company Digest&nbsp;for additional insights pertinent to your portfolio companies.&nbsp; We understand the value of both being on a board, providing crucial strategic guidance, industry expertise, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5,3],"class_list":["post-278770","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-investment-firm","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/278770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=278770"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/278770\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=278770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=278770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=278770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}