You start a business (hypothetically).
In a couple of years, while the business is still at its nascent stages, you want to bring someone to be the CEO (essentially a late co-founder). That person has the following demands.
In a couple of years, while the business is still at its nascent stages, you want to bring someone to be the CEO (essentially a late co-founder). That person has the following demands.
1. 40% stake in the business, immediately vested.
2. 5% of all net profits (on a monthly net profit basis) paid out as salary.
3. No cap on (2).
2. 5% of all net profits (on a monthly net profit basis) paid out as salary.
3. No cap on (2).
This person hasn't proven themselves yet to be a great capital allocator or a CEO, hasn't executed and brought in profits. But they are asking all this to do that. What do you do?
Once you answer the poll option, comment with WHY or WHY NOT you'd do that. Solid reasoning is appreciated.
Sorry for the confusion. The third option is - "All 3 if it is my spouse".
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