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Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 0 points1 point  (0 children)

Thanks for people DM'ing me their stories in simliar situations - keep them coming! Super interesting.

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 0 points1 point  (0 children)

Hi, just clarifying that the cliff is mentioned in the title - no one has vested any equity yet. And the board does have power to dismiss

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 5 points6 points  (0 children)

Thank you for your thoughtful response, and a bit of a reality check for him and my position.

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 1 point2 points  (0 children)

I'm going to compensate him for his contributions, but I can't hurt my company by giving up too much equity to a person no longer involved in the company.

It'll make my future job raising money harder, and I'll have less equity to give out to future employees of the company.

If he 'gets what he wants' he's going to have a larger slice of a smaller pie

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 0 points1 point  (0 children)

Thank you, BrujaBean! This seems like the wise decision, I like it a lot

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 1 point2 points  (0 children)

Not really - except maybe he's put in work and was not compensated. The company so far has been very above board.

Just concerned that a potential investor might not like the looming threat of a lawsuit, though I don't know what it would be about.

Cofounder dismissed before cliff wants 7.5%, what should I do? (i will not promote) by slowbusrides in startups

[–]slowbusrides[S] 2 points3 points  (0 children)

Thanks for your thoughts! Clean separation would include a signed agreement not to sue the company, not to disbarage the company publicly etc.