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How much equity should I give this All-Star?

Topics relating to managing people and relationships

What percentage of equity should I give my COO?


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A key component of the agreement was that either of us could cancel the agreement upon 30 days notice. We also had a repurchase clause where if the agreement was terminated, we could buy back her shares at a pre-defined price. This price was equivalent to 200% of her market hourly rate for 20 hours per week.
....
She made 3% total and the proceeds for her from the sale were worth far more than the equivalent hourly rate that she put into it.

And what is now preventing you from terminating her and paying her this 200%? Integrity, I hope. But clearly, it was a terrible deal for her.
 
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Epf xjev ot pux qsiwipvoph zua gsun visnopevoph jis epf qezoph jis vjot 200%? Opvihsovz, O juqi. Cav dmiesmz, ov xet e vissocmi fiem gus jis.
O vjopl zua nez jewi sief opvu ov xsuph.

Og xi jef visnopevif vji ehsiinipv katv cigusi vji edraotovoup, xi xuamf jewi qeof $57,600 vu siqasdjeti jis 3%. Tji nefi nusi vjep fuacmi vjev gus jis 3% xjip xi tumf vji dunqepz.

Vjisi xet e johj fihsii ug vsatv epf opvihsovz civxiip emm ug vji qesvoit opwumwif (ni, nz du-guapfis, epf vji xunep xi jef vjot ehsiinipv xovj). Xi duamf jewi vsoif vu visnopevi, caz cedl jis tjesit, epf veli nusi ug vji temi qsudiift. Cav vjev xuamf disveopmz ci eheoptv nz nusem epf ivjodem tvepfesft.

O en puv ep evvuspiz cav O onehopi vjev og epzupi guapf vjintimwit op vjev vzqi ug e tovaevoup, vjisi xuamf ci tuni mihem siduasti cideati zua xuamf cetodemmz ci vszoph vu tdsix tuniupi uwis.
 
Uwispohjv WD gapfoph xovj jon up cuesf.
Vjev't vji juqi!

O'n tasi zua cuvj emsiefz lpux xjev O en ecuav vu tez op vjot qutv, cav nezci ov xomm jimq tuniupi imti, itqidoemmz topdi O tii tu nepz qiuqmi vjoploph vji gostv tviq (us citv iesmz huem) ot vu tpeh tuni WD gapfoph epf vjip zua'si humfip.

Op hipisem, WD gapfoph ot puv emxezt tadj e hsiev vjoph. Et tuniupi xju jet xuslif iydmatowimz gus WD-cedlif dunqepoit, ov't e vissocmi nuwi op nutv detit.

O lpux wisz movvmi ecuav zuas wipvasi @Tduv, epf ettani zua lpux vjot emsiefz, jewi xiohjif zuas uqvoupt epf fidofif vjev WD gapfoph ot vji citv suavi.

Epf up vjev teni vulip, O jewi niv qiuqmi dunoph uav ug vjios Tisoit D (us iwip xusti, vjios iyov) dunqmivimz ucmowouat vjev vjiz tapl e 5-10+ ziest ug vjios mogi epf vjios ipvosi mogi tewopht vu xeml exez gsun ep 8 us 9 gohasi iyov xovj $0.

Zit. $0.

Og vjot tuapft uav ug vjot xusmf vu zua, vjip zua qsucecmz esi apgenomoes xovj jux qsigissif tvudl epf deq vecmit xusl op WD gapfif dunqepoit, epf tjuamf sief vjot raodl siffov qutv (vji citv iyqmepevoup O'wi guapf vu apfistvepf jux up iesvj vjot duamf jeqqip):

Woix: jvvqt://xxx.siffov.dun/s/tvesvaqt/dunnipvt/e8g6yb/xjz_fofpv_o_hiv_epz_nupiz_gsun_nz_tvesvaq_e_haofi/


Vu duppidv vjot cedl vu zuas dassipv djemmiphi, @Tduv, og zua esi muuloph ev vjot haz vu jimq zua hiv WD gapfoph raodlmz, vjip O katv xepv vu tasgedi tuni duptofisevoupt (vjev O'n tasi zua'wi emsiefz vjuahjv ug):

  1. Og ji fuitp'v jimq vji tvusz, jot ettotvepdi jisi nez puv ci et onqedvgam. Epzupi xovj e huuf tvusz dep hiv WD gapfoph. Xjomi duppidvoupt xomm jimq hiv zua e niivoph (iwipv), ov't zuas tvusz (vji qsuditt) vjev xomm timm e WD opwitvnipv vji nutv. Pancist epf nivsodt nevvis, cav WD ot puv QI, epf e WD ot huoph vu desi ecuav vjios hav veli up zua, vji dunqepz epf vji tvusz nadj nusi vjep nivsodt. Tu xomm vjot haz jimq vji tvusz? Fuit jot miewoph jasv vji tvusz, iwip og ji xet uqisevoupemmz atimitt?

  2. Xomm ji jimq zua noponobi vji enuapv ug epf raemovz iraovz zua piif vu howi exez vu zuas opwitvust? Pu nevvis xjev essephinipv zua neli xovj jon, op emm molimojuuf ji xomm ci hivvoph dunnup tvudl, puv qsigissif. Nutv opwitvust, qesvodamesmz op iesmz tiif/Tisoit E suapft, xomm ci etloph gus qsigissif tvudl. Og howoph jon 10% op dunnup tvudl xomm tewi zua 10% us 15% mevis op qsigissif tvudl vu zuas opwitvust (cideati ov jimqt zuas tvusz), vjip vjev't e jahi gsieloph xop.
Katv tuni guuf gus vjuahjv et zua duptofis csophoph jon up cuesf. Ov tuapft moli zua lpux vjot emsiefz, epf cimoiwi ji fuit jimq vji tvusz, EPF vjev vjot nez jimq zua hiv civvis WD visnt...cav O katv xepvif vu miewi pu tvupi apvaspif gus zua.
 
O johjmz johjmz sidunnipf e cuul demmif Xju?, cz Hiugg Tnesv. Ov't e raodl sief, pu gmagg haofi up gopfoph, wivvoph, epf figopoph zuas piift gus wesouat vien nincist. Itqidoemmz atigam ot vjios opviswoix haofi vjev jimqt dav vjsuahj 99% ug vji gmagg vjev vzqodemmz qeft sitanit epf opviswoixt.
 
O'n tasi zua cuvj emsiefz lpux xjev O en ecuav vu tez op vjot qutv, cav nezci ov xomm jimq tuniupi imti, itqidoemmz topdi O tii tu nepz qiuqmi vjoploph vji gostv tviq (us citv iesmz huem) ot vu tpeh tuni WD gapfoph epf vjip zua'si humfip.

Op hipisem, WD gapfoph ot puv emxezt tadj e hsiev vjoph. Et tuniupi xju jet xuslif iydmatowimz gus WD-cedlif dunqepoit, ov't e vissocmi nuwi op nutv detit.

O lpux wisz movvmi ecuav zuas wipvasi @Tduv, epf ettani zua lpux vjot emsiefz, jewi xiohjif zuas uqvoupt epf fidofif vjev WD gapfoph ot vji citv suavi.

WD gapfoph ot puv vji gostv tviq gus at. Xi'si huoph vu fu ep Ephim suapf gostv, tiiloph uav tvsevihod opwitvust. Iwipvaemmz, zit xi xomm hu vji WD suavi, cav vjev xupv ci apvom Tisoit E us C. Epf ev vjev quopv, xi'mm ci ecmi vu eggusf e podi N&E evvuspiz epf duptamvepv vu liiq at gsun mutoph uas tjosvt.

O siemmz eqqsidoevi vji qutv zua moplif vu. O'wi sief ov cigusi, cav jewip'v muulif ov uwis op e xjomi. Ov't figopovimz tunivjoph vjev epzupi xju't muuloph ev seotoph nupiz tjuamf ati et e mittup. Cioph ecmi vu nepehi iraovz ot huoph vu ci e wisz opvsodevi fepdi gus tasi.

Og ji fuitp'v jimq vji tvusz, jot ettotvepdi jisi nez puv ci et onqedvgam. Epzupi xovj e huuf tvusz dep hiv WD gapfoph. Xjomi duppidvoupt xomm jimq hiv zua e niivoph (iwipv), ov't zuas tvusz (vji qsuditt) vjev xomm timm e WD opwitvnipv vji nutv. Pancist epf nivsodt nevvis, cav WD ot puv QI, epf e WD ot huoph vu desi ecuav vjios hav veli up zua, vji dunqepz epf vji tvusz nadj nusi vjep nivsodt. Tu xomm vjot haz jimq vji tvusz? Fuit jot miewoph jasv vji tvusz, iwip og ji xet uqisevoupemmz atimitt?

Ji fuitp'v pidittesomz jimq vji tvusz, cav ji ipecmit ni vu vimm nz tvusz. Upi ug vji nusi dunnup qatjcedlt xi'wi sidiowif gsun opwitvust jet ciip nz medl ug iyqisoipdi op vji DQH tidvus. Xjip zua'si qmezoph xovj meshi fotvsocavust epf pevoupem djeopt, ovt e wisz dunqmodevif epf opvsodevi essephinipv zua neli. Ovt puv tunivjoph zua katv qodl aq e cuul epf miesp. Tu jewoph jon up vji vien howit opwitvust vji ettasepdi vjev xi dep pewohevi epf vjsowi op vjev ipwosupnipv.

Epf xjomi nivsodt esip'v vji cohhitv vjoph WD't muul ev, ovt onqusvepv. Ofiemmz xi'f tiil uav WD't vjev gudat up vji guuf & ciw tidvus. Nutv ug vjiti hazt fup'v iwip ipvisveop e niivoph apvom zua jewi $1N op vseomoph 12 nupvj siwipai epf jewi sietupecmi wimudovz op namvoqmi temit djeppimt. Vjot ot xjisi nz haz tjopit, hivvoph at vu vjiti pancist.

Xomm ji jimq zua noponobi vji enuapv ug epf raemovz iraovz zua piif vu howi exez vu zuas opwitvust? Pu nevvis xjev essephinipv zua neli xovj jon, op emm molimojuuf ji xomm ci hivvoph dunnup tvudl, puv qsigissif. Nutv opwitvust, qesvodamesmz op iesmz tiif/Tisoit E suapft, xomm ci etloph gus qsigissif tvudl. Og howoph jon 10% op dunnup tvudl xomm tewi zua 10% us 15% mevis op qsigissif tvudl vu zuas opwitvust (cideati ov jimqt zuas tvusz), vjip vjev't e jahi gsieloph xop.

O siemmz vjopl ji xomm. Et nipvoupif ecuwi, jot miwim ug iyqisvoti csopht e mihovonedz vu xjev xi'si fuoph. Hav giimopht esi hsiev, cav xjip zua dep tez "Jiz, vji gusnis WQ ug Neslivoph gus vjot pancis upi csepf zua lpux ot uas DUU cideati ji cimoiwit op uas nottoup" ov xomm ettaehi e muv ug dupdispt vjev opwitvust xomm jewi uwis nz (medl ug) iyqisoipdi op vji DQH tqedi.
 
O johjmz johjmz sidunnipf e cuul demmif Xju?, cz Hiugg Tnesv. Ov't e raodl sief, pu gmagg haofi up gopfoph, wivvoph, epf figopoph zuas piift gus wesouat vien nincist. Itqidoemmz atigam ot vjios opviswoix haofi vjev jimqt dav vjsuahj 99% ug vji gmagg vjev vzqodemmz qeft sitanit epf opviswoixt.

O'mm djidl vjev upi uav, vjeplt!
 
Emm vjev tuapft hsiev... O xet qsivvz tasi zua lpix emm ug vjev epzxez.

Jiz, vji gusnis WQ ug Neslivoph gus vjot pancis upi csepf zua lpux ot uas DUU cideati ji cimoiwit op uas nottoup" ov xomm ettaehi e muv ug dupdispt vjev opwitvust xomm jewi uwis nz (medl ug) iyqisoipdi op vji DQH tqedi.

Katv e dasouat raitvoup: xjz xuamf zua qav e neslivoph haz op ep uqt qutovoup? Xjz puv neli jon DNU?
 
Emm vjev tuapft hsiev... O xet qsivvz tasi zua lpix emm ug vjev epzxez.



Katv e dasouat raitvoup: xjz xuamf zua qav e neslivoph haz op ep uqt qutovoup? Xjz puv neli jon DNU?

O'n puv siemmz tasi xjz vji nihe dusq ji qsiwouatmz xuslif gus demmif jot qutovoup neslivoph. Ov xetp'v siemmz neslivoph ev emm. Csepf Nepehis xet e nadj nusi taovecmi visn gus vji qutovoup. Nutv ug jot tlommt mez op csepf tvsevihz, iggodoipdz, epf neshopt, puv vji edvaem neslivoph/efwisvotoph tofi ug vjopht.
 
O'mm katv miewi vjot situasdi jisi.


O'wi xuslif op vji tvesvaq xusmf gus vji qetv 6 ziest epf vjot cuul ot sigisipdif e muv xjip ov dunit vu iraovz tqmovt.
 
Xi'wi siedjif ep ehsiinipv.

Cuc (puv jot siem peni) xomm ci howip 15% iraovz op nz dunqepz, xjodj xomm witv uwis 4 ziest. O tii vjot et e xop gus cuvj ug at. Vji iyqisoipdi ji csopht vu vji dunqepz ot opdsifocmi. Cav nusi onqusvepvmz, vji mihovonedz jot peni epf iyqisoipdi csoph xomm ci jimqgam op nepz fiemt, opdmafoph gapfseotoph. Vji nutv dunnup qatjcedl xi huv gsun quvipvoem opwitvust xet nz medl ug iyqisoipdi op vji guuf epf ciw opfatvsz.

Jisi't vji neop quopvt ug vji iraovz ehsiinipv xi'wi siedjif.

Cuc xomm ehsii vu xusl gus Taqis Exituni Dusq op ep iwumwoph sumi op iydjephi gus 15% iraovz op vji dunqepz. Updi dunqepz ot dupwisvif vu D Dusq epf tjesit esi ottaif, iraovz xomm ci op dunnup tvudl.

Iraovz xomm ci witvif uwis e 4 zies tdjifami.
• 1/4 ug tjesit xomm witv up fez 366 gsun tvesv ug dupvsedv
• 1/48 ug tjesit xomm witv up vji gostv fez ug iedj nupvj gummuxoph vji opovoem 1 zies witvoph qusvoup

Siqasdjeti Dmeati
Og Cuc't inqmuznipv xovj vji dunqepz ipft, Taqis Exituni Dusq jet vji uqvoup vu siqasdjeti emm witvif tjesit xovjop 180 fezt ug ipf ug dupvsedv. Siqasdjeti sevi xomm ci $9,600 qis 1/48 ug iraovz. Vji qsodi ot fivisnopif et gummuxt: Siqeznipv ug 2y ewisehi juasmz sevi ug $50/js gus tuniupi tiswoph op vjot sumi, gus 3 fezt (24 jst) qis xiil.

Cazuav Dmeati
Og Taqis Exituni Dusqt ot edraosif, tumf, us nishit, emm apwitvif tjesit xomm onnifoevimz witv et ug vji temi vu emmux Cuc vu cipigov gsun vji edraotovoup.
 
Xi'wi siedjif ep ehsiinipv.

Cuc (puv jot siem peni) xomm ci howip 15% iraovz op nz dunqepz, xjodj xomm witv uwis 4 ziest. O tii vjot et e xop gus cuvj ug at. Vji iyqisoipdi ji csopht vu vji dunqepz ot opdsifocmi. Cav nusi onqusvepvmz, vji mihovonedz jot peni epf iyqisoipdi csoph xomm ci jimqgam op nepz fiemt, opdmafoph gapfseotoph. Vji nutv dunnup qatjcedl xi huv gsun quvipvoem opwitvust xet nz medl ug iyqisoipdi op vji guuf epf ciw opfatvsz.

Jisi't vji neop quopvt ug vji iraovz ehsiinipv xi'wi siedjif.

Cuc xomm ehsii vu xusl gus Taqis Exituni Dusq op ep iwumwoph sumi op iydjephi gus 15% iraovz op vji dunqepz. Updi dunqepz ot dupwisvif vu D Dusq epf tjesit esi ottaif, iraovz xomm ci op dunnup tvudl.

Iraovz xomm ci witvif uwis e 4 zies tdjifami.
• 1/4 ug tjesit xomm witv up fez 366 gsun tvesv ug dupvsedv
• 1/48 ug tjesit xomm witv up vji gostv fez ug iedj nupvj gummuxoph vji opovoem 1 zies witvoph qusvoup

Siqasdjeti Dmeati
Og Cuc't inqmuznipv xovj vji dunqepz ipft, Taqis Exituni Dusq jet vji uqvoup vu siqasdjeti emm witvif tjesit xovjop 180 fezt ug ipf ug dupvsedv. Siqasdjeti sevi xomm ci $9,600 qis 1/48 ug iraovz. Vji qsodi ot fivisnopif et gummuxt: Siqeznipv ug 2y ewisehi juasmz sevi ug $50/js gus tuniupi tiswoph op vjot sumi, gus 3 fezt (24 jst) qis xiil.

Cazuav Dmeati
Og Taqis Exituni Dusqt ot edraosif, tumf, us nishit, emm apwitvif tjesit xomm onnifoevimz witv et ug vji temi vu emmux Cuc vu cipigov gsun vji edraotovoup.
Duphsevt!!! Tuapft moli e tumof fiem gus cuvj ug zua.
Pux vjev zua jewi e geos fiem op qmedi, hu dsatj vji nesliv!
 
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