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Should you elect your new co-founder as a director immediately?

1 points by keiretsu ↗ HN

5 comments

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keiretsu
Assuming you just got yourself a new co-founder for your year-old startup, should you elect him as a director too, besides giving him equity?
juwo
Did you give your cofounder equity immediately? Or was there vesting and/or a trial period?

I am interested in learning more.

keiretsu
Immediately. He's taking 5% equity in exchange for no salary (He got other biz that he is earning his money from)

In a way, this 5% is sort of compensation for his consultation/advisory services, albeit more hands on.

He ask for 5% equity plus directorship. Problem is, right now i'm the only director. So if i don't like him, i cannot sack him as director. I have to wait for 1 year for the AGM before i can don't re-elect him.

falsestprophet
A man with a 5% stake seems more like an employee than a co-founder.
keiretsu
he has options to buy up to 40% stake