What are advisory shares?

Advisory shares come in two varieties, stock options and restricted stock units. An RSU is a form of common stock that a company promises to deliver to an employee at a future date, depending on various vesting and performance conditions. RSUs are not received until these restrictions are over or conditions are met.

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.

How many advisory shares do advisors get?

The amount of advisory shares granted to advisors can vary depending on individual circumstances and negotiations. Understanding the differences between advisory shares and regular shares helps founders design appropriate compensation structures.