Board of advisors sample charter and advisor role description
- 1. Board of Advisors – Sample Charter and Advisor Role Description High Technology Venture (TechVentureCo) Dave Litwiller April 2011 Mission: The Board of Advisors (BoA) is to provide strategic guidance to the executive management team of TechVentureCo about the development and improvement of the company. Objectives: The BoA is to provide assistance for planning, technology, operational and market development. • Provide links between TechVentureCo and its strategic environment • Enhance visibility of the company world-wide • Assist in recruitment • Review growth initiatives Responsibilities: • Receive and react to reports on the state of TechVentureCo in a timely fashion • Act as a sounding board to the management team about the development of the company • Provide overviews of major trends or discontinuities in the competitive environment of which management and the BoA should be aware • Execute and adhere to TechVentureCo’s BoA standard agreement providing for an at-will independent contractor relationship, confidentiality and non-disclosure or proprietary information, and disclosure of conflicting duties to other persons or entities that may arise Typical Matters of BoA Involvement: • Major investments • Deal origination and execution • Introduction to strategic partners and investors • Introduction to prospective key staff and management hires Compensation: • Advisors generally do not receive cash compensation, but they do receive stock options • Stock option grants are subject to the then current Board of Directors approved stock option plan, and require signing a standard stock option agreement • Certain members of the BoA may additionally provide professional services to TechVentureCo. Those who do are compensated for those services based on arms-length transactions which executive management believe reflect the value of services rendered
- 2. Reimbursement: • Out of pocket expenses related to BoA are reimbursed when approved beforehand by the company Meetings: • BoA meetings are generally held once per quarter, with ad hoc communication between subsets of the BoA and management somewhat more frequently • Full BoA meetings in person are not expected in the normal course of activities. When BoA meetings are held, participation can generally be by telephone, and the company strives to schedule them at mutually convenient times Composition: • The TechVentureCo BoA will consist of business and technology leaders with expertise in X, Y, Z, and other relevant domains • Advisors are selected based on having expert relevant domain knowledge, world- class networks, reputations to help attract outstanding employees, and to build the image and foundation of much greater future success Time Commitment: • BoA members are anticipated to spend about two to three hours per month in direct contact with TechVentureCo executives, and four to six additional hours of individual preparation and follow-up Publicity: • BoA members names and biographies may be listed on the company’s web site under a section titled Advisors, as well as other marketing materials Affairs of the Corporation: • BoA members are not responsible for the business and affairs of the corporation, such as corporate conduct, financial monitoring and reporting, the hiring and evaluation of key executives, and legal compliance