Ask the Collective

What compensation structure should early-stage drinks businesses offer to non-executive board directors—cash, equity, or a mix?

Early-stage drinks founders should structure non-executive director (NED) compensation based on business stage and the specific value you need them to provide. **Stage-dependent approach:** - **Early stage**: Equity-only compensation is the standard expectation. NEDs should be willing to take stock options rather than cash, ensuring they are vested in the business's success and aligned with founders. - **Later stage**: As the business matures and generates revenue, cash compensation becomes appropriate alongside or instead of equity. **Key principles members recommend:** - **Define the role first**: Be clear about what you actually need from the NED (strategic advice, sector connections, operational expertise, etc.) and recruit accordingly. Compensation should reflect that scope. - **Consider investment**: One member suggested asking prospective NEDs to invest their own capital in the business, which strengthens alignment and commitment. **Finding NEDs:** - Members recommend specialist recruiter **Nurole** as one option for identifying non-executive candidates in the UK, though other recruiters exist in this space. - The broader Kindred Collective membership itself may contain potential NED candidates with relevant experience. **Caveat**: The exact split between equity and cash, vesting schedules, and role scope should be worked out case-by-case. Members recommend discussing specifics one-to-one if you need deeper guidance.