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joshhart: If you are still reading the comments, you need to decide if you are a co-founder or an employee. If you believe you are an employee, then structure
by dennykmiu 17y ago
joshhart: If you are still reading the comments, you need to decide if you are a co-founder or an employee.
If you believe you are an employee, then structure a better deal that is more fair which basically says that you are getting paid at market value ($3K now and $2K as deferred compensation which is essentially a senior loan to the company that the owner needs to pay you back in the future).
Then at the same time, negotiate a stock plan which you can purchase upfront for just a few hundred dollars which the owner can buy back if you do not perform.
However, my own advise is that being employee #1, you are essentially a co-founder (because of the current down market, there isn't going to be much upsides for a long long time).
- joshhart 17y agoHi Denny, I appreciate the advice. Honestly, I believe myself to be an employee. I'll be making a pretty decent salary and getting a few percent of equity upfront. The founder has worked very hard on the produce for about 15 months or so. I probably didn't give enough information earlier but I'm not sure exactly what I can or can't say legally. I also don't think I really understood how ESPPs worked before. We'd revalue the company and I'd be able to purchase at a reduced rate. I don't think that's a bad deal, especially for a product and monetization model I really believe in.
- dennykmiu 17y agoThat sounds great. We are ALL on your side. Good luck.