Advisor Agreement Review

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,009 reviews

Jump to Section

Need help with an Advisor Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What Is an Advisor Agreement Review?

An advisory agreement outlines expectations between the advisor and the company they work for. It is also known as an advisory contract. When hiring an investment advisor, the hired adviser must clearly understand their roles and responsibilities.

The advisor agreement describes the assignment of work to the advisor. In addition, it explains the relationship between the two parties involved in the advising relationship.

Typical contracts include details such as:

  • Compensation
  • Confidentiality
  • Advisory shares
  • Allocation of expenses

Here is an article with more information about investment advisory contracts.

Who Can Review an Advisor Agreement?

An advisory board may review an advisor agreement before hiring an advisor for their company. Likewise, a business or corporate attorney with experience advising agreements can help ensure that an agreement is legally compliant and mutually beneficial.

Here is an article with a sample advisory agreement and details on common sections and elements.

Meet some lawyers on our platform

Daniel R.

9 projects on CC
View Profile

Todd H.

2 projects on CC
View Profile

Wendy C.

2 projects on CC
View Profile

Don G.

27 projects on CC
View Profile

How Much Equity Should an Advisor Get?

The rates for financial advisors vary, but the average share is 0.25% to 1%. The amount of equity an advisor receives usually depends on the size of the startup and the level of advice given.

In other words, the advisor will seek compensation through fees and equity relevant to the impact their advice likely has on your company’s growth and success.

As with any financial decision, it’s always a good idea to comprehensively understand what’s involved before entering into a contractual agreement.

Here is an article that offers sound advice about how to start an advisory board for your business.

Key Terms to Look for in an Advisory Agreement

Every legal contract has key terms that ensure it meets legal requirements. In an advisory agreement, here are some elements you should always include:

  • Services. Outline the services the advisor will provide, such as “financial advice or general business advice,” and how often they will be provided. The company should also note that it reserves the right to review, consider, and decide how to act based on the advisor's advice. This also includes their right to ignore and act against advice.
  • Compensation. Specify how much the advisor will be paid for their services, how often they will be paid, and how they will be paid. These terms and conditions should be clear and concise, and there should be no question of how the advisor will be compensated.
  • Advisor expenses. List expenses the company will cover for the advisor, such as travel and lodging or transportation costs. The most common way to incorporate this clause is to permit the advisor to write the company a letter requesting reimbursement for specific expenses. The best way to prevent reimbursement disputes is to have an addendum (attachment) of pre-approved costs.
  • Terms of termination. The company and advisor should have the right to end their working relationship. You may require formal (written) notice of termination within a certain timeframe, such as 7 days before the desired termination date. Contract termination agreement terms are entirely up to you and based on your needs.
  • Confidentiality. Advisors work closely with companies, and as such, they tend to learn inside information that businesses wish to keep private. A confidentiality clause or added confidentiality agreement ensures that the company’s data stays protected. This may be referred to as a nondisclosure agreement as well.
  • Independent contractor agreement. The company should clarify that the advisor is working for them as a 1099 independent contractor and that their services do not render them an employee or entitle them to any employee benefits. If you choose to offer the advisor benefits, these need to be outlined in detail.

Before you write an agreement, it is important to research your potential advisors. These individuals will play a large role in your company’s success, so trusting them implicitly is essential. A good rule of thumb is to interview several advisors to understand their level of expertise better and whether they seem suitable to manage your financial needs.

Here is an article on how to choose a financial advisor.

How Do You Compensate Advisory Board Members?

Advisory board members are compensated financially with monthly pay as well as equity. Different companies can negotiate their compensation terms with their advisory board members. Details of compensation are outlined in the advisory board agreement.

Generally, advisors seek equity through advisory shares as part of their agreement. Advisory shares are stock options awarded to advisors for their services. It is common for businesses to offer advisors the opportunity to buy stocks at a discount rather than hand them shares outright.

However, certain advisors may be given higher privileges and compensated in shares directly.

Here is an article with more information on advisory shares and how to use them.

Should You Hire a Lawyer For an Advisory Agreement Review?

Yes, working with an attorney is the best way to protect your business’s interests when forming an advisory board or to hire a new advisor for your company. Business lawyers know how to prioritize their client's best interests, stay legally compliant, and negotiate fairly with advisors. You should also interview several business lawyers before entering into a contractual agreement.

It is also advisable to research your business’s advising needs and options in-depth before enlisting any professional services. For example, suppose you are unsure whether you need an advisory board agreement. In that case, you can contact a lawyer for a free consultation through ContractsCounsel’s marketplace.

Here is an article that defines the advisory board, its role in a company, and strategies for forming one for your business.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Sarah K. on ContractsCounsel
View Sarah
5.0 (13)
Member Since:
June 21, 2021

Sarah K.

General Counsel (Commercial, Tech & IP Focus)
Free Consultation
Get Free Proposal
New York, New York
11 Yrs Experience
Licensed in NY
New York University School of Law

Seasoned attorney with over 10 years of experience in legal leadership across business functionalities. Specialization in tech, product, IP, data and commercial but well versed in all transactional and operational advisory matters.

Michael K. on ContractsCounsel
View Michael
5.0 (34)
Member Since:
June 28, 2021

Michael K.

Associate Counsel
Free Consultation
Get Free Proposal
Miami, FL
5 Yrs Experience
Licensed in FL
St. Thomas University School of Law

A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.

Roman V. on ContractsCounsel
View Roman
5.0 (1)
Member Since:
July 9, 2021

Roman V.

Trademark Attorney
Free Consultation
Get Free Proposal
Milwaukee, WI
9 Yrs Experience
Licensed in MD
Marquette University Law School

I'm an experienced trademark attorney and enjoy helping clients protect and grow their brand names through trademark registration and enforcement. I've worked with a wide variety of clients in different industries, including e-commerce, software as a service (SaaS), and consumer goods, to register trademarks for product names, logos, and slogans, both in the US and abroad.

Justin A. on ContractsCounsel
View Justin
5.0 (8)
Member Since:
July 7, 2021

Justin A.

Free Consultation
Get Free Proposal
Seattle, WA
6 Yrs Experience
Licensed in NY, WA
The University of Chicago Law School

I am an entrepreneurial lawyer in the Seattle area dedicated to helping clients build and plan for the future. I earned my law degree from the University of Chicago and worked in a top global law firm. But I found advising real people on legal issues far more rewarding. Reach out to discuss how we can work together!

Max M. on ContractsCounsel
View Max
4.9 (17)
Member Since:
July 12, 2021

Max M.

Business Attorney
Free Consultation
Get Free Proposal
Baltimore, Maryland
16 Yrs Experience
Licensed in MD
Georgetown University Law Center

Results oriented business attorney focusing on the health care sector. Formerly worked in Biglaw doing large multi-million dollar mergers and acquisitions, financing, and outside corporate counsel. I brought my skillset to the small firm market, provide the highest level of professionalism and sophistication to smaller and startup companies.

Joshua C. on ContractsCounsel
View Joshua
Member Since:
June 28, 2021

Joshua C.

Free Consultation
Get Free Proposal
Ashland, MA
7 Yrs Experience
Licensed in CA, MA
UCLA School of Law

Attorney Joshua K. S. Cali is a respected business, estate planning, and real estate attorney based in Ashland serving Middlesex County and other nearby areas. Joshua graduated summa cum laude from Bentley University in Waltham, MA, and from UCLA School of Law in Los Angeles. Before starting his own firm, Joshua practiced estate planning for high net worth clients at a boutique law firm in San Diego, CA.

Erin F. on ContractsCounsel
View Erin
Member Since:
June 28, 2021
Drew B. on ContractsCounsel
View Drew
Member Since:
June 30, 2021

Drew B.

Managing Member
Free Consultation
Get Free Proposal
Cleveland, Ohio
25 Yrs Experience
Licensed in MO, OH
Saint Louis University

Drew is an entrepreneurial business attorney with over twenty years of corporate, compliance and litigation experience. Drew currently has his own firm where he focuses on providing outsourced general counsel and compliance services (including mergers & acquisitions, collections, capital raising, real estate, business litigation, commercial contracts and employment matters). Drew has deep experience counseling clients in healthcare, medical device, pharmaceuticals, information technology, manufacturing, and services.

Daniel R. on ContractsCounsel
View Daniel
Member Since:
July 1, 2021

Daniel R.

Managing Attorney
Free Consultation
Get Free Proposal
10 Yrs Experience
Licensed in IL
Gonzaga School of Law

Daniel is an experienced corporate attorney and works closely with corporations, privately held companies, high-net worth individuals, family offices, start-ups and entrepreneurs. Daniel graduated from the Gonzaga University School of Law and is licensed to practice law in Illinois.

Jaroslaw P. on ContractsCounsel
View Jaroslaw
Member Since:
July 20, 2021

Jaroslaw P.

Free Consultation
Get Free Proposal
Warsaw, Poland
16 Yrs Experience
Licensed in AK
Wroclaw University - Law

Attorney - I graduated in Law from the University of Wroclaw and in Economics from the Scottish University of Aberdeen; My legal interests include, in particular: contracts, intellectual property, and corporate law, as well as transactional / regulatory advisory along with related risk management (M&A); The industries with which I have worked most often are: IT, real estate and construction, professional sport, industrial chemistry and medicine, oil & gas, energy, and financial services; I possess many years of experiences working with international entities for which I have prepared and negotiated contracts, as well as (due diligence) reports, analyses, litigation documents, and presentations; Apart from law firms, I have also worked for investment banks and big 4 - thanks to that I also gained financial, technological, and consulting experiences; I shall be described by: accuracy, openness, honesty, concreteness, a broad approach to the problem, and ... a lack of bad manners, along with a good sense of humour :)

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call