Hi Vishal:
There are some rule of thumb but ultimately it all depends on how much
value you
think they can add to your venture. If they are hands on and spend
significant time
with you, it is not unheard to have cash + options agreement with them.
As far as the
contract is concerned you can have a 1 year or 2 year duration. We have
advisory
board members who do not attend any meetings but provide enormous value
by
opening doors for us or helping us recruit or sharpening our pitch to
customers.
You have to figure out what help you need and for how long. As your
enterprise
grows, you will need these people less and less as you will hire
professional
executives to fill the critical roles. But early on the advisory board
members if
picked carefully can provide enormous value.
It is hard to put a number on the number of options or cash compensation
as it is done on a case by case basis.
Soumitra