Whether investors or board members of a company take any payment.

I'm a bit curious to know whether investors or board members of a company take any payment. I didn't heard about it anywhere else. Can anyone give me an answer for this question?.

Board Incentives Company Salary Investors

asked Oct 21 '14 at 09:39
Sky Buzz
36 points

1 Answer


For early stage startups, the board is usually only the founder(s) and investors. They all have received a lot of stock in the company anyway, so no additional compensation is necessary. Sometimes an outside board member is added, in which case they'll typically receive some stock options (similar to advisor shares).

Investors do not get money until the company is acquired or goes public and the shares the investors own can be sold for a profit.

Board members at large public companies do get compensated for their time.

answered Oct 21 '14 at 15:17
Alain Raynaud
10,927 points
  • @Alain Raynaud, Thanks for the answer. I've a small doubt regarding the stock option. I'm building an eCommerce company. We are going to raise some amount (Rs. 5 Crore ~ $800000) from the local investors. What is the best stock option (%) we can provide for investors at this stage. – Sky Buzz 4 years ago
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