Ask HN: Leaving as founder, what happens with equity?

Post by 3pt14159 » Fri, Nov 13, 2015, 12:06 AM UTC

mason55 wrote: post #38

3pt14159 wrote: post #29

I've been in this situation before and I returned the equity because I felt like there was still a lot of work to do. The company ended up selling for $3 million four years later, so I would have make some cash, but I still feel like I did the right thing because I wasn't leaving an angry situation, I felt like they didn't need my expertise after they pivoted. Ultimately I think reputation matters the most, but if yo…

> I've been in this situation before and I returned the equity because I felt like there was still a lot of work to do Generally vested equity represents work done and unvested equity represents work still left to do. Did you guy just not do any vesting and award everyone's equity at the start?

Post by k__ » Fri, Nov 13, 2015, 1:01 PM UTC

imjk wrote: post #28

k__ wrote: post #19

Earlier quoted context omitted.

Can't the other owners simply do a "squeeze out"?

Can you explain this?

Post by Arnt » Sat, Nov 14, 2015, 8:26 PM UTC

crusso wrote: post #30

Arnt wrote: post #11

Earlier quoted context omitted.

Reexamination is proper because there's disagreement. IMO, as he lays out the facts, he shouldn't give away more than a token amount. But the other founders see the facts differently. So the right thing to do is to agree on what the equity is for and then discuss what the numbers should be and why.

The "right thing" was to agree on that before the work was performed. It's too late to go back on that now. The original vesting agreements are all that should hold. If the other founders want to come to a new agreement with some cash compensation or other special status in exchange for his returning some of the company's equity, that's up for negotiation.