Startup Board Compensation & Consequences
If today we notice that boards of directors of start-ups and scale-ups integrate more and more independent members, the question arises about their remuneration.
- Should an independent director be awarded a percentage of the fully-diluted equity of the company? Some say it should be a 0.5% per year of services.
- How much then should receive the Chairperson? 50% or 20% more?
- How long should last the vesting period?
These are delicate questions… If, in Switzerland, the board members are a body of a company their remuneration is treated as employment for tax and social insurance purposes. The board has the duty to make sure the board members compensation is adequate and meets the necessary requirements.
This topic will become more and more present and some companies and board members may have some surprises, especially in the case of a successful exit!
Join our next workshop about Board Compensation on April 28th at 12:30!
The new Swiss Venture Capital Report was published on 26 January. It analyses 304 financing rounds closed in 2020 and includes further article such as an interview with Michael Hengartner, President of the ETH Board, and a list of Swiss "soonicorns". 
