How do advisory shares work?

Advisory shares are typically subject to a vesting schedule, which means that advisors earn their shares over a period of time. This aligns the advisor’s interests with the long-term success of the company.

Are advisory shares a good idea for a company?

Advisors to the company are usually granted options to buy shares rather than given the actual shares. Advisory shares can help ensure confidentiality while preventing conflicts of interest. However, they can also prove costly for a young company.

What are advisor shares?

Advisory shares, also known as advisor equity or advisor stock, are equity grants given to individuals who serve as advisors to a company. Unlike traditional employees, advisors are typically not full-time team members but offer their specialized knowledge and guidance to the company on a part-time or intermittent basis.