But even if they had been a C corp, vesting or no vesting, it sure sounds like they were both still employed so it still would have been a 50-50 equity split.

But even if they had been a C corp, vesting or no vesting, it sure sounds like they were both still employed so it still would have been a 50-50 equity split. Thus your friend couldn't have ordered anyone around? In order for vesting to help, someone has to be no longer employed and thus no longer accruing equity. I'm not arguing against vesting, but I don't understand your example.