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Is it okay if I quit(as a Co-Founder)?
Hello,
I have gotten myself into a complicated situation and would love to hear the public opinion.
So here is the problem:
I started a company with two partners but since I did not bring enough value to the company I was not included in the stock distribution in the opening of the company.
I was promised that I would get 10% (in options) of the company when the options plan opened.
Now we are a year in with over $1m in investments and 10+ employees and I have still not received my 10%.
I am underpaid and the reason they are refusing to raise my salary is because I "have" 10% of the company.
I keep bugging them to give me the options but that does not seem to be happening.
After a lot of thinking I think the right thing to do is to quit. If I do quit I will kill the moral of the company as well as get my investors mad at me and ruin future potential partnerships.
I am unhappy in the company and although I am a team leader I am disappointed in the CEO's poor management of the company.
What do you guys think I should do?
Any answer will be appreciated!
- andymoe 9y agoI'm sorry you're in that situation. Do you have that promise in writing? If so you are in a much stronger position and if it comes to that an attorney may help. Regardless, I'd bring the stock and the concerns about the CEO to the board/investors if you think it will help but don't waiver in your convictions. It sounds like they don't have their stuff together, are deliberately trying to screw you or both. In that case you don't owe them anything and you'd be doing yourself a favor by getting out now. Their behavior is a big red flag. I've made the mistake of ignoring those in the past because I've wanted it so badly and had things drag out and cost me a whole lot of time and money.
- spartabubble 9y agoI have in my contract that when the options plan will open I will receive the 10%. The contract though is only valid while I still work there. How do I know if I should quit or stick along? What should I be looking out for?
- andymoe 9y agoYou've found it. It's time to have an adult conversation with them. They are not treating you like a co-founder even though 10pct is co-founder territory. It's been a year and they've not acted in good faith. Even more importanlty they are probably screwing the employees as well by not having their stuff together. Everyone's options are supposed to vest over time. Theirs and yours and they had better have yours and everyone else's vest retroactively from start date. The other thing is that the valuation of the company went up after taking the million dollars and I don't even know what that would do to options price or how to deal with that. Companies in the US can give you a 80pct discount on the options or something without having tax consequence I think and there are probably other ways to get around that but anyway. Yeah, talk to your atterney. This is bad.
- gus_massa 9y agoRemember to talk with your lawyer, not any lawyer and definitively not with the company lawyer.
- spartabubble 9y agoShould I talk to the lawyer before I quit of after?
- andymoe 9y agoTalk to them right now before you do anything. Take all the paperwork you can get your hands on.
- gamechangr 9y agoIs the only concern the 10%? If so, I would stay. If not, I would go.
- icedchai 9y agoif you really started the company, you should be getting actual stock, not options.