Nadav Har'El wrote:
The third way is when a "company" is so young, it is not a company yet.
Imagine a few founders with some capital and an idea, but no technical
skill. They can approach one or several programmers (or whatever), and
offer them to create a new joint venture. A new company would be created,
with the other founders getting 90% of its stock, and you 10% of its
stock. You sign a contract saying that if you don't work for a year in
the company, you have to give your stock to the other founders.
As an employer, I have to say I'm uneasy with this.
First of all, I think that a person doing a job needs to get paid. If a company cannot afford to pay, it should not hire. I know all the considerations that state that early money is more expensive than later money, and that without the extra hands you cannot hope to be worth enough to justify the stocks value. Still, I think anyone working for me (or anyone else, for that matter) should have enough money to pay for the grocery, at the very least (and no, this does not include me).
The other thing is that options or stocks in non-public companies (there is no real difference between the two) is a promise, nothing more. Many cases, this promise is not fulfilled. I don't like distributing promises I can't fulfill. I believe in creating a business out of creating a name, and someone who walks around with stocks with which there is nothing they can do does not strike me as a "citizen of good will", no matter how full the disclosure was prior to making the transaction.
Shachar
-- Shachar Shemesh Lingnu Open Source Consulting ltd. Have you backed up today's work? http://www.lingnu.com/backup.html
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