3 ms·

Some really emotional comments on here. Definitely an emotional situation but take a step back - If your cofounder fires you and you keep 45%, you're basically

Some really emotional comments on here. Definitely an emotional situation but take a step back - If your cofounder fires you and you keep 45%, you're basically getting half the value for none of the work. Aside from the pride, this is actually very favorable. Probably the best way to handle it is to realize you own half of this thing, and offer to write a resignation letter to minimize the drama, swallow your pride, and hope all your eng team doesn't quit. Potentially talking to YC/investors would be good because they might be able to talk the CEO out of such a huge mistake. Posting on reddit, not so good. Eng employees will read it and potentially leave, turning your 45% into less value.

jollybean 5y ago
There's 0% chance someone who left early on would be able to hold on to 45%. They'd need some very heavy duty protections, and even then. The CEO, given their actions, would find a way to recover that stock later, probably at the behest of other investors.
- CogitoCogito 5y ago
  They might negotiate something like 10-15% for just walking away though.
  - jollybean 5y ago
    Yes, they should, but the issue is how they maintain that and not be diluted in a tricky/sneaky way.
- webmaven 5y ago
  > There's 0% chance someone who left early on would be able to hold on to 45%. They'd need some very heavy duty protections, and even then. The CEO, given their actions, would find a way to recover that stock later, probably at the behest of other investors. Yeah. If nothing more subtle is possible, they can always take a round that dilutes the heck out of everyone's stake and have an agreement in place to 'make whole' some of the current team with extra stock grants or options.
- pjdemers 5y ago
  I agree, there is no way to raise a new round with an ex-employee owning 45%. At best, new investors will convert the equity to a note that limits the upside in dollars.
rkk3 5y ago
> If your cofounder fires you and you keep 45% This assumes they do not have a vesting schedule.

jollybean 5y ago

There's 0% chance someone who left early on would be able to hold on to 45%. They'd need some very heavy duty protections, and even then. The CEO, given their actions, would find a way to recover that stock later, probably at the behest of other investors.

CogitoCogito 5y ago
They might negotiate something like 10-15% for just walking away though.
- jollybean 5y ago
  Yes, they should, but the issue is how they maintain that and not be diluted in a tricky/sneaky way.
webmaven 5y ago
> There's 0% chance someone who left early on would be able to hold on to 45%. They'd need some very heavy duty protections, and even then. The CEO, given their actions, would find a way to recover that stock later, probably at the behest of other investors. Yeah. If nothing more subtle is possible, they can always take a round that dilutes the heck out of everyone's stake and have an agreement in place to 'make whole' some of the current team with extra stock grants or options.
pjdemers 5y ago
I agree, there is no way to raise a new round with an ex-employee owning 45%. At best, new investors will convert the equity to a note that limits the upside in dollars.

rkk3 5y ago

> If your cofounder fires you and you keep 45% This assumes they do not have a vesting schedule.