Questions

I founded a company but have brought on an industrial designer and engineer on board as co-founders. They both bring unique skill sets and will put in the sweat equity, I am the CEO and will work in more the business intelligence side of things alongside PM duties. I have some hesitation giving them a large amount of ownership, as that would dilute my own. They deserve credit for their contribution, but to have my own shares dwindle into the 30-40's percentage of ownership gives me concern. Looking to vest month to month over a period of 2 or 3 years. Thoughts are welcome..

It is possible for a company to issue different classes of shares with different voting and economic rights. You could structure the equity for the new management to have restricted voting rights and for their returns to cut in only once your shares have delivered a certain level of returns.


Answered 5 years ago

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