I am the CEO of my startup, and have two co-founders. I hold the most shares among us, but our ownership percentages are fairly close. We have no other employees. One co-founder is only involved part-time because of another job; he has useful connections for our business, but can't contribute much day-to-day. The other one works in the company full-time like me, but needs to be guided through almost everything they do, taking very little initiative to solve problems on their own. I often feel that in the time I spend worrying about whether or not they have accomplished their next important task (and constantly following up with them), I could have just done it myself. Am I better off trying to motivate them to contribute more, or looking for new team members?
There are a lot of variables here. As the CEO you have to set expectations for how your team members, regardless of equity status, are expected to perform. Startups, just like larger businesses, need to be very clear on job expectations, what makes a success and what doesn't. Ultimately holding equity does not make someone a better worker. If you feel you have created a problem for yourself by allocating equity to partners who do not carry their weight then you hopefully have a buy/sell agreement in your operating or partnership agreement. I've had to do this several times. Some of them didn't go well and some did. I'd be happy to discuss it with you.
Answered 9 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in