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I’m not a lawyer either, but these risks are easy to skirt. First they have time to just fire him, and without contractual protections she/he’s out before vest
by valuearb 6y ago
I’m not a lawyer either, but these risks are easy to skirt.
First they have time to just fire him, and without contractual protections she/he’s out before vesting a single share. Most US states are At Will employment, meaning they don’t need a reason. If the CTO wants to contest the firing, where will they get $30K+ to pay a lawyer sue over a nearly worthless business?
If he/she is able to vest their first year before getting fired, but they then dilute the CTO further, where is the CTO going to get $30K+ to pay their lawyer sue over 10% of a nearly worthless business?