Ask HN: How to fire your co-founder?

#1

Post by mesogamer » Thu, Dec 26, 2013, 7:13 PM UTC

So I just read this HN posted article (The 7 Habits of Highly Overrated People - https://news.ycombinator.com/item?id=6965295) and thought a lot about my co-founder who is doing jack shit in the company. I already talked to him about lowering his share options (which he currently holds about 40%, (same as me, after seed round dilution)), but with no avail. He actually threatens the company's success if I ever try to "sneak a move" on him when in reality his contributions are near 0 for product development as well as S&M.

If I talk with my boards on his misbehaviour it will get them stressed and stop believing on the company. Is there really no way to fire him and the only way is to actually quit ?

Re: Ask HN: How to fire your co-founder?

#2

Post by maaku » Thu, Dec 26, 2013, 7:24 PM UTC

1. Watch Startup.com.

2. Talk to him. Offer him something in return for his shares (such as a large amount of debt which is only triggered if/when the company sees a liquidation event of suitable magnitude).

There hopefully will not be a step 3.

Re: Ask HN: How to fire your co-founder?

#3

Post by bsirkia » Thu, Dec 26, 2013, 7:25 PM UTC

That sounds brutal. Do you have anyone that you both trust, like an older advisor, college professor, etc. that could maybe sit down with both of you and mediate?

Re: Ask HN: How to fire your co-founder?

#4

Post by badclient » Thu, Dec 26, 2013, 7:30 PM UTC

If I talk with my boards on his misbehaviour it will get them stressed and stop believing on the company

Sorry dude, looks like that is precisely what you are going to have to do. Don't worry about the board stressing; they can handle it. That's their job.

Focus on YOUR job: the success of the company. The board will stop believing you when you prolong this longer than you should have, actually making the situation much worse.

When you go to the board, GO PREPARED. Assume the board does not know anything. And treat it almost like a trial where you will get to present your side, and at some point, your co-founder will get to present his. In these cases, I like to open up a document and put down the facts in bullet points. When presenting, remain calm and stick to the facts, which when evaluated by a sensible party(your board), should have them arrive at the same conclusion as you.

Re: Ask HN: How to fire your co-founder?

#5

Post by sbarre » Thu, Dec 26, 2013, 7:36 PM UTC

badclient wrote: post #4

If I talk with my boards on his misbehaviour it will get them stressed and stop believing on the company Sorry dude, looks like that is precisely what you are going to have to do. Don't worry about the board stressing; they can handle it. That's their job. Focus on YOUR job: the success of the company. The board will stop believing you when you prolong this longer than you should have, actually making the situation m…

I was in a slightly similar situation (without a board), and I did wait too long to act, and by then it was too late and the only option was to break up the company.

It sucked, and I felt like I had wasted 3 years of my life, and while my co-founder definitely did his own damage by not holding up his end, my biggest personal mistake was to not immediately, and aggressively, deal with the problem when I saw it arise (and after initial cooperative attempts at resolution went nowhere).

If you are putting everything you have into your startup, then you have everything to lose if you let someone else fuck it up for you.

Re: Ask HN: How to fire your co-founder?

#6

Post by conformal » Thu, Dec 26, 2013, 7:36 PM UTC

funny. i was in this position many moons ago with 50/50 ownership between me and my partner.

it blows and there is never an easy way to dissolve such relationships. i had to threaten 'going nuclear', i.e. closing the business, to get him to leave.

Re: Ask HN: How to fire your co-founder?

#7

Post by andrewfong » Thu, Dec 26, 2013, 7:38 PM UTC

badclient wrote: post #4

If I talk with my boards on his misbehaviour it will get them stressed and stop believing on the company Sorry dude, looks like that is precisely what you are going to have to do. Don't worry about the board stressing; they can handle it. That's their job. Focus on YOUR job: the success of the company. The board will stop believing you when you prolong this longer than you should have, actually making the situation m…

You may in fact be legally obligated to discuss this with the board. I would also give a heads-up to your lawyer about this. If this gets messy, you'll want some ironclad legal protection for the company.

Re: Ask HN: How to fire your co-founder?

#8

Post by raheemm » Thu, Dec 26, 2013, 7:40 PM UTC

Here is one way you could structure this. Create goals for him to reach. If he repeatedly fails to reach them, then you can ask him for compromises such as giving up equity, etc. If you do it in the right way (that is a win-win, helping him to make more contribution), then it can be worked out. If he repeatedly fails, then you can involve your board and work out a solution that is best for the startup.

Re: Ask HN: How to fire your co-founder?

#9

Post by greghinch » Thu, Dec 26, 2013, 7:41 PM UTC

This is why you have a board. And hopefully some decent legal documentation in place. Talk to them, lay out facts and the action you want to take, and just follow the documented process for things like board votes and such (again I hope you have legal docs in place, otherwise be prepared to get a lawyer and slog it out…). Sounds like you think the success of your company might depend on you getting rid of him, so just treat it like what it is: business, not personal.

Re: Ask HN: How to fire your co-founder?

#10

Post by losethos » Thu, Dec 26, 2013, 7:43 PM UTC

My operating system is finished. I wrote all 130,000 lines from scratch by myself over the last ten years. Marketing!!! marketing!!! marketing!!!

God is my cofounder. God said 640x480 16 color way back in 2004. God said many things.

Without being God's temple, it fails. With being God's temple, it for sure, succeeds.

God says... now_you_tell_me Ghost I'll_get_right_on_it do_I_have_to You_fix_it what_do_you_want ghetto you_think_you_could_do_better caution youre_welcome guilty God ghetto incoming kludge no_news_is_good_news now_that_I_think_about_it go_ahead_make_my_day I_planned_that China ghetto quit money ingrate that's_no_fun