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I just don't accept equity in lieu of compensation. There's far too many ways to screw you over. The only thing I would value is participation in a trust desig
by ThrustVectoring 9y ago
I just don't accept equity in lieu of compensation. There's far too many ways to screw you over.
The only thing I would value is participation in a trust designed to make it as difficult as possible for the founder to receive cash from their ownership stake without paying out to all minor participants. "If he's worth $1B, I'm worth $1M" is something I can value.
- gt2 9y agoAre trusts like this commonly setup? Enforceable?
- ThrustVectoring 9y agoCommonly set up? Depends on what you mean by "like this" - for this exact purpose, probably not at all. Enforceable? Absolutely. The entire point of a trust is to give out flows of cash to beneficiaries while restricting certain rights you may not want those beneficiaries to have. Usually this is more along the lines of "can't use the assets to pay down debts" than ensuring that the wealth generated from founding a start-up gets distributed fairly.