Co Founder hasn’t delivered in 6 months- how do I handle equity and the conversation?
Co Founder hasn’t delivered in 6 months- how do I handle equity and the conversation?
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Handling a co-founder who hasn’t delivered over several months requires a strategic and empathetic approach. First, review the original equity agreements and any vesting schedules or performance milestones outlined at the outset. Open, honest communication is key—schedule a candid conversation to understand their perspective, challenges, or obstacles they may be facing.
It’s important to differentiate between temporary setbacks and a pattern of underperformance. If the co-founder’s lack of contribution impacts the startup’s progress, consider options such as restructuring their equity stake, implementing performance-based vesting, or, if necessary, redefining their role or exit plan.
Balancing fairness with the company’s health is crucial. Often, clear contractual provisions combined with respectful dialogue can help resolve these issues amicably. Consulting with legal and financial advisors can also ensure that any adjustments align with the original agreements and protect your long-term interests.