Question
I am a co-founder/CEO of a tech startup. What should I do with my co-founder partner that became so busy right after signing the equity contract with 4-yr vesting with a 1-yr cliff? Basically he worked very hard before he signed the equity contract (he owns 20%) last month but now became very passive only doing minimal work. Furthermore, he told me that because he is too busy until next March, he can't do intensive work until then. We are launching our product in the market in November and I just can't see his contribution anymore. Honestly, I want to fire him because he isn't adding any value while demotivating others. Any advice?
Answers: 2 public & 0 private
He is a co owner with a 20% stake. Buy him out and next time spell out what is expected of equity owners. Otherwise, if he does not have a serious misdemeanor or felony not much way. Look at state statutes to see how liberal your state is. He is not an employee at will so don't go down that road. Do you have HR policies in effect? If not, then the warning and firing is difficult. Buy him out.
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