Document background
An Advisory Board Engagement Letter is a crucial document used when companies seek to formally engage experienced professionals in advisory capacities. This document is particularly common in the United States, where companies across various sectors establish advisory boards to provide strategic guidance, industry expertise, and networking opportunities. The letter typically details the scope of involvement, compensation structure, confidentiality requirements, and compliance obligations. It's especially important for maintaining clear expectations and legal protection for both parties, particularly in regulated industries or when equity compensation is involved. The Advisory Board Engagement Letter should be carefully drafted to comply with both federal and state regulations, especially regarding securities laws if equity compensation is included, and corporate governance requirements.
