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I think Slicing Pie is a better solution than vesting. It's wrong for a founder to lose their equity if they work hard for ten months and then have a split wit

I think Slicing Pie is a better solution than vesting. It's wrong for a founder to lose their equity if they work hard for ten months and then have a split with a cofounder in the tenth month. Also I suggest founders earn stock, not options in the early days. If investors want founders on a vesting plan an ISO plan can be created for them- but the shares they have earned previously are never to be subject to vesting. Unless investors will have their shares best as well. And none of them will because they money they put in is real money.... but so is the sweat founders put in.

pc86 10y ago
Why should ten months of work result in a potential payday years later?
- pavlov 10y ago
  Why not? Depends entirely on what happens in those ten months.
- TheCowboy 10y ago
  Many reasons. You're taking on a risky business venture. You aren't getting a comparable salary that you could obtain at another company. You don't know if it will help, hurt, or be neutral with regard to your future career prospects. A startup is going to more demanding and stressful, and a bigger drain on your life outside of work. You could find yourself pushed out for unfair reasons, while you made legitimate contributions. If the startup fails easy on, you likely won't be eligible for unemployment benefits. All of these risks should be accounted for when considering your compensation. If you can't accept giving up equity to people who will not be around when the company IPOs, then expect to pay a full market salary with benefits.
- 20yrs_no_equity 10y ago
  Why should you not be paid for your work? Founders often work for little or no salary. If you work 10 months and you get contractors hourly rates- sure you don't deserve stock. If you get market salary, you deserve a little bit of stock (Because you're taking risk). If you are making less than market you deserve stock commensurate with the income you gave up-- that is an investment with a dollar value as legitimate as any other investment in the company. One year cliffs are just completely unfair, and at this point, absurd. A 90 day cliff is fine by me, though I think it's still a bit intrinsically unfair, because the employee is always taking more risk than the company. But it's an acceptable compromise to me.

pc86 10y ago

Why should ten months of work result in a potential payday years later?

pavlov 10y ago
Why not? Depends entirely on what happens in those ten months.
TheCowboy 10y ago
Many reasons. You're taking on a risky business venture. You aren't getting a comparable salary that you could obtain at another company. You don't know if it will help, hurt, or be neutral with regard to your future career prospects. A startup is going to more demanding and stressful, and a bigger drain on your life outside of work. You could find yourself pushed out for unfair reasons, while you made legitimate contributions. If the startup fails easy on, you likely won't be eligible for unemployment benefits. All of these risks should be accounted for when considering your compensation. If you can't accept giving up equity to people who will not be around when the company IPOs, then expect to pay a full market salary with benefits.
20yrs_no_equity 10y ago
Why should you not be paid for your work? Founders often work for little or no salary. If you work 10 months and you get contractors hourly rates- sure you don't deserve stock. If you get market salary, you deserve a little bit of stock (Because you're taking risk). If you are making less than market you deserve stock commensurate with the income you gave up-- that is an investment with a dollar value as legitimate as any other investment in the company. One year cliffs are just completely unfair, and at this point, absurd. A 90 day cliff is fine by me, though I think it's still a bit intrinsically unfair, because the employee is always taking more risk than the company. But it's an acceptable compromise to me.