Advisor, Advisory Board Member & Board Director Compensation (Europe & US)

Executive takeaways

  • Advisors who provide broad business guidance are usually compensated with equity at early stages and with hybrid models (equity plus small retainers) as the company grows.

  • Door-opener advisors, whose main role is warm introductions to potential clients or partners, are more often compensated with success-based fees and sometimes a very small equity slice.

  • Advisory board members (non-fiduciary) are compensated with modest equity or expenses-only at early stages; cash components become more common in Europe as companies mature.

  • Board directors (fiduciary) receive equity at seed, then a mix of cash retainers and smaller equity top-ups from Series A onward.

  • Commission-based pay for fundraising intros is legally sensitive in both US and Europe; alternatives include equity kickers or flat bonuses.

Individual advisors (broad strategic role)

Compensation models
Equity-only is most common at pre-seed and seed. Hybrid models with equity plus modest cash (retainers or per-meeting fees) emerge by late seed or Series A. Cash-only is rare in early stages.

Typical equity levels
Pre-seed advisor grants cluster around 0.1–1.0 percent, with Carta data showing a median of 0.21 percent. UK data points to 1 percent as a popular grant for a general advisor working less than two days per month. Frameworks such as the FAST template suggest 0.25–1.0 percent depending on maturity and engagement.

Cash patterns
Where used, hourly rates are typically 250–500 USD or 500–2,000 USD per meeting. Retainers for hands-on advisors range from 1,000–5,000 USD per month.

Door-opener advisors (connector role)

Role characteristics
Their main contribution is making warm introductions to target customers, partners, distributors, or sometimes investors. Engagement is lighter touch than a strategic advisor, but impact can be very high if introductions convert.

Compensation models

  • Equity-only is uncommon, but where used typically 0.05–0.25 percent vesting over one to two years. Sometimes conditional equity is granted only if qualified introductions result in business.

  • Success-fee or commission models are common for commercial introductions: 5–10 percent of the first-year contract value, sometimes capped at 25,000–50,000 EUR/USD. Fundraising commissions are generally avoided due to regulation; safer alternatives are equity kickers triggered upon a successful close.

  • Hybrid packages are frequent, with a small monthly retainer (500–2,000 EUR/USD) plus success fees per closed deal. Occasionally paired with a very small equity grant of 0.05–0.1 percent for alignment.

Typical levels

  • Enterprise client intro: 5–10 percent of year-one contract value.

  • Distributor/channel intro: 5,000–15,000 EUR/USD upon signed agreement, sometimes plus a small trailing commission of 1–3 percent in the first year.

  • Geographic market entry: 1,000–3,000 EUR/USD monthly retainer during entry campaign, plus 10,000–20,000 EUR/USD upon first client or distributor signed.

  • Investor intro: equity kicker of 0.1–0.25 percent triggered on funding close, avoiding transaction-based cash fees.

Regional notes
In the US, commercial success-based fees are common but fundraising commissions must be structured carefully under securities law. In Europe, hybrid packages with modest retainers and capped success bonuses are typical. Equity use for door-openers is less common than for strategic advisors, except in the UK and France where 0.1 percent grants are sometimes seen.

Advisory board members (non-fiduciary)

Compensation models
In the US, equity grants are common. In continental Europe, especially Germany, many early advisory boards are expenses-only or symbolic stipends, with equity used selectively.

Typical levels

  • Equity pool of 1–5 percent for all advisory board members combined at pre-seed, with 0.25–1.0 percent per member.

  • At Series A and B, new members might receive 0.1–0.5 percent.

  • Cash is often limited to expenses or small per-meeting fees until the company matures.

Board directors (fiduciary, independent/NEDs)

Compensation models
Seed stage board directors are often compensated with equity only. By Series A, cash retainers and per-meeting fees become common, while equity grants shrink to reflect higher valuations. Investor-appointed directors are usually unpaid beyond expenses.

US levels

  • Annual retainer around 32,000 USD median for private companies.

  • Per-meeting fees around 2,500 USD.

  • Equity grants of 0.25–1.0 percent at seed, falling to below 0.5 percent at later stages.

Europe levels

  • Seed: equity around 0.2–1.5 percent for independent directors; cash rare.

  • Series A: new independent directors often receive equity of 0.5 percent or less plus 10,000–30,000 EUR annual retainer.

  • Switzerland: 1,000–3,000 CHF per meeting or 10,000–30,000 CHF annual retainer.

  • Germany: many early-stage advisory bodies are expenses-only; more formal supervisory boards pay cash retainers.

Model comparison

Dimension Strategic advisor Door-opener advisor Advisory board member Board director
Main value Mentorship, strategy, sparring Warm introductions to clients/partners Collective sounding board, credibility Governance, oversight, fiduciary duties
Time commitment Ongoing calls and deep dives Ad hoc, light touch Quarterly meetings Regular meetings, legal duties
Typical equity 0.25–1.0% 0.05–0.25% (if any) 0.25–1.0% 0.2–1.5% at seed, less later
Cash Minimal early, small retainers later Retainer 500–2k/mo + success fee 5–10% of deal Small stipends, often expenses only 10k–30k EUR/USD retainer + meeting fees
Commission Rare Common for commercial intros; avoid fundraising commissions Rare Never

Sources

  1. Carta – “Advisory shares: A complete guide for founders” (June 5, 2025)

  2. SeedLegals – “Advisory shares: How much equity should you give your advisor?” (Dec 6, 2023)

  3. OpenView Partners – “The Founder’s Guide to Startup Advisors” (May 2, 2023)

  4. Founder Institute – FAST Agreement v2

  5. Visible.vc – “Is an Advisory Board Paid? What Startups Should Know” (Nov 15, 2024)

  6. Corporate Governance Institute – “How much are startup board members paid?”

  7. Compensation Advisory Partners – “Private Company Board Compensation & Governance 2024”

  8. Private Company Director – “2024 Private Company Board Compensation Survey”

  9. Investopedia – “How Much Board of Directors Members Get Paid…”

  10. SpinLab (Germany) – “Advisory boards in German tech-based startups”

  11. Startup Board Academy (Switzerland) – “Startup Board Member Compensation – Part 1/2” (Sept 17, 2024)

  12. b2venture – “Board Compensation” (EU startup governance resource)

  13. Reuters Breakingviews – “European boards have too little skin in the game” (July 17, 2024)

  14. Davis Wright Tremaine – “Can a Startup Pay a Transaction-Based Fee…?” (Mar 2021)

  15. FINRA Rule 2040 – Payments to Unregistered Persons

  16. SEC Commissioner Remarks (July 22, 2025)