What are advisory shares?

Advisory shares come in two varieties, stock options and restricted stock units. An RSU is a form of common stock that a company promises to deliver to an employee at a future date, depending on various vesting and performance conditions. RSUs are not received until these restrictions are over or conditions are met.

What is the difference between advisory shares and equity shares?

Equity shares and advisory shares are distinct forms of compensation used by companies to reward individuals who contribute to their growth. While equity shares represent ownership stakes and carry voting rights, advisory shares are specifically granted to advisors and align their interests with the company’s success.

How do advisory Shares differ from regular shares?

The equity a particular advisor receives may vary based on considerations like the advisor’s role, experience and the stage of the company. Advisory shares differ from regular shares in many ways, but the differences mostly boil down to who receives them and how they are structured.