Our NY-based partner, David Leffler, has authored a by-lined article for Law360.com concerning the potential pitfalls of corporate advisory board agreements.
Many successful people are invited to serve on advisory boards across various industries, often in exchange for equity rather than cash compensation. However, Leffler explains why such arrangements should be approached with caution. He writes, in part:
Advisory board agreements are like orphaned children — overlooked and ignored — and clients frequently sign them without your review. Yet, they sometimes contain provisions that significantly restrict the signer and even make breaching the agreement almost inevitable.
Leffler’s article highlights a number of important factors that should be considered, including non-compete covenants, intellectual property rights, and illusory compensation formulas.
Click HERE to download a PDF of the article.
