I'm surprised to see how many people are saying that this is a bad look. You want to fire this person so fire them. > Should I let them vest then let them go,

I'm surprised to see how many people are saying that this is a bad look. You want to fire this person so fire them. > Should I let them vest then let them go, or just let them go? Feedback from former founders esp is helpful. Any downsides to having them on the cap table? IMO the time to fire an employee is as soon as you have decided that you need to fire them. That's all there is to it barring an extreme circumstance, but in this case it's clear cut - you gave them plenty of time, warning, etc. It has gotten worse. As for your cap table, I doubt there are serious implications to having them on it, assuming they're just typical common stock options and not very many. That said, the first time I fired someone I got on a call with my lawyers to make sure everything was ironed out - I suggest you do the same. Firing people really really sucks. It's maybe the worst part of the job? Not sure. But ultimately that's what you sign up for when you start a company. It's not fair to anyone else on the team to keep someone around who you know needs to go ASAP. I see a lot of posts saying that your other employees will feel negatively. That's not my experience at all. If this is a justified firing they probably already think it should have happened and they will totally understand why you had to do it. Explain to them that there was ample notice, you set a timeline for improvement, you saw things get worse, and so you took action. edit: I will add that: a) It's your company, you ultimately make the calls on how these situations are handled b) You're going to have the most context. No one else has the same view of how the company is structured, how people will react, etc. Use your best judgment.