Wed, 11 November 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Startups with product-market fit that are generating revenue should consider installing a board.
The board of directors provides oversight for the company.
Early-stage boards should have an audit and compensation committee.
The audit committee sets the policy regarding the finances including control, expenses, and reviews.
The compensation committee sets pay for the company’s employees and ties the compensation to performance with a view to market standards.
Compensation committees should approve all salaries, raises, options, and equity grants.
Finally, the board performs governance which provides oversight to the company’s operations.
The board should have a lead director who sets up the meetings and drives the agenda with input from the board members.
Lead directors run the board meetings and manage the CEO review process.
Finally, there are board observers.
They represent an investor group who has the right to sit in on the board meetings to gather information for the investors.
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