3 ms·
This sounds good. One point I don't agree with is this one: What happens if not all the early employees need to take a salary? Don't resolve these pr
by kristianp 13y ago
This sounds good. One point I don't agree with is this one:
What happens if not all the early employees need to take a salary?
Don't resolve these problems with shares. Instead, just keep a ledger of how
much you paid each of the founders, and if someone goes without salary, give
them an IOU. Later, when you have money, you'll pay them back in cash.
Those who don't take a salary don't take any risk, so I would say the IOU should be greater than the missed salary as a minimum.
- tptacek 13y agoSo pay it back with interest. The point is to avoid forcing the valuation question into internal tactical decisions, which is what you're doing if you issue shares to offset deferred salary.