Lerner: Fractional executive pay should scale without equity cliffs
Ely Lerner · Ely Lerner: Should Startups Hire Advisors & How much should they be paid? | E1075 · 20VC with Harry Stebbings · Oct 25, 2023 · at 29:07
Ely Lerner, EIR at Reforge and startup advisor, explains how founders should structure compensation and equity packages for fractional C-level executives.
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“Usually what you would do is you would look at what you would hire a full-time C-level in that position for, and then you would just scale it back by the fraction. So usually it's like two days a week or three days a week. Those tend to be the most common versions of that. And so you're really just scaling that back. So you also generally don't put a cliff on the equity because they, you know, sometimes it's a six month engagement or whatever.”
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