When preparing the board package, you’ll need to include a signed copy of your offer letter. This typically goes in the ‘Employer Verification Letter’ section of the board package. The offer letter should clearly outline your base salary, bonus and/overtime compensation (if applicable) as well as any other compensation i.e. sign-on bonus, equity awards, etc.
Oftentimes, an offer letter can be somewhat confusing to a layperson, particularly if you’re receiving equity awards which vest over time. Therefore, we recommend drafting a supplemental letter which explains your new compensation structure in easy to understand language. Creating a table which breaks down your new compensation structure while also comparing it to your current compensation structure is particularly helpful in this endeavour.
Here is an example:
If you’re also receiving a signing bonus or other compensation, be sure to explain how this further improves your annual income. Here’s an example of additional language which may be added to your change of employment letter:
In addition to your offer letter and additional compensation explanation letter, please be sure to submit an employer verification letter from your current employer.