How do I selectively dilute people on my cap table who I don’t like?

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JASON LEMKIN

The best way is vesting. It won’t get you into any legal or other trouble. And it will benefit you the most.

Put the longest, and least aggressive vesting schedule on stock and stock options for everyone — including yourself. Set an example here.

Folks “you don’t like” will eventually leave, for one reason or another. Given a lengthy and traditional vesting period, they won’t leave with all that much stock.

But accelerate too much stock up front, resist vesting, etc. … and the one ones that really benefit are the least committed.

More here: A Simple Commitment Test For You And Your Co-Founders – SaaStr

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Published on October 2, 2017
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