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The founder could be forced out; would a new board take an outsted founder's word on a verbal for comp? What if the founder gets hit by a bus? Sad indeed, but
by b112 4y ago
The founder could be forced out; would a new board take an outsted founder's word on a verbal for comp?
What if the founder gets hit by a bus? Sad indeed, but who will verify the cash owed?
What if the company is insolvent? A buy out may result in partial repay... but new owners are not going to pay on mere word.
Things are on paper for reasons. More than listed above.
- jeffrallen 4y agoYou're right, but a payout from equity compensation is contingent, already, on those things and a thousand others not happening. It's a lottery and not worth my time trying to guess the odds. Better to use that time enjoying a fair salary to work with interesting people, and then we'll see. Maybe the promise is kept, maybe not. I think analysing equity compensation carefully is a good idea. But one outcome of that analysis can be, "Yolo, let's just give this a shot, take things a day at a time and enjoy the ride." Not everything in life can or should be put into contracts. (Despite my recent ode to them.)