How does a Founder get Fired?

How does a Founder get Fired? [Fire-Founder] TL;DR: Fired as the Founder — totally a dream or a nightmare come true? It's 3:35 A.M. We wake up in hot sweat so wet we've soaked our Night Ranger vintage crop top right through. We had this awful dream that we were somehow fired from our own company. --------------------------------------------------------------- Today’s Advice Sponsored by [Fundable](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W5SMrVM20XTmxN6KS5MstzSY20/5/f18dQhb0S8308Z99_6W5GYyXB2qwv31W32xFgL2MnjTtMf5kpYXD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G17226bHMYWW5K_zzq5qJL6LW3GyQ2k5K_zXKW3lj2tv3blhRkN116tMWXZR2CN5GGfgYZY5f8N44cLLQNgJBkW8zX89t5rPLG7W62p3Q414_j1dW3jMQyF3_QVgKVJkChb5kZ3QKW2_D3rM5klWxzW5mckP58JQYK1VQcf6h5r8j54W8zlNth5nd7x8W8zXk_x2YJGGPN3RvhRNZZKR1W5GFxw-33Y7dfW8w35z-2m713hN6NlwZmwZy_fVcZLWR86l4pCW8xTkVT8h2wmqW83lNT45rVXj0W2Mw4vC83C5JPN7g2Qd0WDM00W2vCYHR5LJ8DjN8GPjtnXm-srW3h1_nV3NV0pmW7b76fk63N5VVW3y19vM3wMXFCTg8Kb3hT8v4103) Wait. I'm the Founder — how can I get fired? If you own 100% of the voting stock and have no other shareholders — you can't. Your totalitarian rule is safe, El Presidente. However, the moment we have additional shareholders in the mix, the game can change quickly. Multiple shareholders, especially investors, typically introduce provisions in the Operating Agreement of the company that "protect" the shareholders from wrongdoing by the officers of the company. Does that mean the janitor can initiate a palace revolt and overthrow us? Probably not. But it does mean a particularly hostile cabal of investors, co-founders and board members could give our reign a shortened term. Can I get fired even if I own most of the company? It depends on how the company is structured and what agreements are in place. For example, it's possible for a minority investor to have a provision in the company Operating Agreement (or other bylaws) that states they have the power to remove any officer of the company. Often this is set up as a last resort measure in case the Founder goes off the reservation (it happens, so it's there for a reason!) Now, that doesn't mean we'd lose our equity (in most cases), but it would create a situation where we could lose our job as an officer of the company. Would I lose my equity if I were fired? Depending on how our stock is set up, we may be on a vesting schedule. Again, this is typically only set up if we have investors in our deal, but if we are fired (for cause) there may be the case that any remaining stock that we had that wasn't vested will be forgone. If we're fired without cause — if, for example, there was simply a reduction in workforce due to financial problems — that may trigger our vesting differently, but that would be something we'd have to examine on a case-by-case basis. In most instances, however, losing your "job" (your salaried role) and losing your equity isn’t the same thing. --------------------------------------------------------------- [sponsored-badge] Ready to raise a round of funding? Then I’m sure you’ve realized it’s easier said than done. One percent of startups successfully raise funding, but [Fundable](W4VVHQ63S1PDDW3njyB-7W6x3y0/*N5Rbcwrg0k_tW2ZLlBy5FNZ6x0/5/f18dQhb0S82_8Z99_6W5GYyXB2qwv31W32xFgL2MnjTtMf5dj-XD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G17226bHMYWW5K_zzq5qJL6LW3GyQ2k5K_zXKW3lj2tv3blhRkN116tMWXZR2CN5GGfgYZY5f8N44cLLQNgJBkW8zX89t5rPLG7W62p3Q414_j1dW3jMQyF3_QVgKVJkChb5kZ3QKW2_D3rM5klWxzW5mckP58JQYK1VQcf6h5r8j54W8zlNth5nd7x8W8zXk_x2YJGGPN3RvhRNZZKR1W5GFxw-33Y7dfW8w35z-2m713hN6NlwZmYVSztN7mfF3xrX3l1W6VzKpq7HFfp7W7b_7Sr6NBHRNW1xGZQm5v_MqSW6P4lCX56qjGqW1Ngx1c51bqP4W26gsmc80rJZqW1TK3Yr6x50VJW7yM0J-518mJ_W2PqlWm723QB2F71wShb_8Wnf26MlgH03) is making it easier. $563M in the books The [Fundable](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W1_L2VB20NJp4W4yvqV23Khs6f0/5/f18dQhb0S82_8Z99_6W5GYyXB2qwv31W32xFgL2MnjTtMf5dj-XD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G17226bHMYWW5K_zzq5qJL6LW3GyQ2k5K_zXKW3lj2tv3blhRkN116tMWXZR2CN5GGfgYZY5f8N44cLLQNgJBkW8zX89t5rPLG7W62p3Q414_j1dW3jMQyF3_QVgKVJkChb5kZ3QKW2_D3rM5klWxzW5mckP58JQYK1VQcf6h5r8j54W8zlNth5nd7x8W8zXk_x2YJGGPN3RvhRNZZKR1W5GFxw-33Y7dfW8w35z-2m713hN6NlwZmYVSztN7mfF3xrX3l1W6VzKpq7HFfp7W7b_7Sr6NBHRNW1xGZQm5v_MqSW6P4lCX56qjGqW1Ngx1c51bqP4W26gsmc80rJZqW1TK3Yr6x50VJW7yM0J-518mJ_W2PqlWm723QBbN71wShb1CpfPdg6tCd03) team helps startups launch their fundraise by helping craft your pitch, identifying investors, and developing your outreach strategy. On average they work with only 50 startups a month. If you feel like you have the traction, team, and social proof to build something great, request a consultation below! [Get Funded →](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W4yMCYk2Zx_lXV7xkmz3c1Qdy0/5/f18dQhb0S82_8Z99_6W5GYyXB2qwv31W32xFgL2MnjTtMf5dj-XD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G17226bHMYWW5K_zzq5qJL6LW3GyQ2k5K_zXKW3lj2tv3blhRkN116tMWXZR2CN5GGfgYZY5f8N44cLLQNgJBkW8zX89t5rPLG7W62p3Q414_j1dW3jMQyF3_QVgKVJkChb5kZ3QKW2_D3rM5klWxzW5mckP58JQYK1VQcf6h5r8j54W8zlNth5nd7x8W8zXk_x2YJGGPN3RvhRNZZKR1W5GFxw-33Y7dfW8w35z-2m713hN6NlwZmYVSztN7mfF3xrX3l1W6VzKpq7HFfp7W7b_7Sr6NBHRNW1xGZQm5v_MqSW6P4lCX56qjGqW1Ngx1c51bqP4W26gsmc80rJZqW1TK3Yr6x50VJW7yM0J-518mJ_W2PqlWm723QB6F71wShbfhGqf2lBDhP03) --------------------------------------------------------------- In Case You Missed It [How do I fire a Co-Founder?](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W2-j1mh38q4CdW8VhHyG7hrjHw0/5/f18dQhb0Smj38Z99mYW5GYyXB2qwv31W32xFgL2MnjTtMf5n28XD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197KzmVW2ybRTX98zZXmW69_67C50F4lSW7mWzmh973GnSW96LK703Tm8C1W6R2Z3c96LDYDW62vB8f2z2tGGW7d094f6G7FblW4DFfS36RTg77W5vcL2k6bF3lyW69BPjK96RzPFW2Bmvcd6nX01WW2HSTW53sX7T6W7YPwcr5WJrGsW863RDC1K0hWlMZfxjqFzX_LVNMSpr1pqLJnW8ykjdN3sd26JW2nJBSr640GXxW2hgvSG6p1GDwVfCQtH515CPvW6b48F95WCy_7W2ph6_w4VFCgRMhzVNs4XrSMW6qP_R_4M1133W4H_8kL2NqGsdW6zCFTd1Q5Ln_W1sd4dw7C2S8fW2dPj794-dnG0V215-p1Jp43VW1B81QZ4wFKFLW41Bs0c32rklCW7F4jlW1qlCPBN4QhChYNDyx-MrTzpY1D_x6f7MPtbj03) Let's talk a little bit about what a "co-founder divorce" looks like, and what we can do to prepare if and when that time comes. [What is an Operating Agreement?](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W8s0_m18YzlXdW6--sMC7gzZKr0/5/f18dQhb0S5fv8Z9b3TW5GYyXB2qwv31W32xFgL2MnjTtMf5qSTXD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197KzmVW2ybRTX98zZXmW69_67C50F4lSN7mWzr3YnLXMW5DpVWJ4s9Y48W8S1vd-6VSm9bW8YJ4q883KLVRW9c8Brx7NMdQNV4cNXy75WRL3W4qyNh55hbn60W2Q3h1b4_d57zW8j970h2Ypt8cW8sfvC41YfZX_W3qp1mg1vt156N7537RZ60qdrW2YcFX64ycHsjN2rVS6vN8_B5W5KpfDY8tnSYBW1PrrR-5LDvkSW5R5QNp6Wys9tW8N0W_549snKCW1VlZT-68LygCW2cXWwK76nPJRW2Wht-B49kJcmW2h5JK-3zXm3vW8csLSq112p1wW3q79N73n8Fh6W5H-xHc310QLXW3T-8H65J0bHmW9469hF4QDcJ_W1vsWdf5pN3MtW6YGrvr5_5mmmW1BgBKM3ZXbNyW7XC8JG6BXSYFVrVprC56gBW-W2zYdYy2v9zKd0) Everything you need to know to set up a solid operating agreement and get your startup on the road to success. [Feeling like a Founder Fraud? (podcast).](W4VVHQ63S1PDDW3njyB-7W6x3y0/*W4RPxpV947nmxW6pw69V6LSsVN0/5/f18dQhb0S82_8Z995KW5GYyXB2qwv31W32xFgL2MnjTtMf5dj-XD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G172269zD6gW1Hlmp32Km0ZbW5fMlNW7w3wPSW1NC3Kc1F6KSLW4mpNzd69wPrZW8XM4h31tm4fXW2VgPkd4jLHbDW7zkQG44dfdknW1ZvRcd49gDrhW2PSm_46s6-crW8-hFCs4mJxs0W4ftJ--7F-kjJN7ntvVSycmC6W8WytFF7mbmC9N1xNYt3qjfxtW7xPxCM20XQKdW7McnpL1z9KZwN4cvtZ4tfYYsW33NdR0228cJFN5rWbqQPs031VgkKmy5qm0cvW2HGNb92HGMS8W30yKH24rxRfLW5Wb2Cq3C812ZW7b_1Xv30Hpx6W11plJj4tCXNxN52tkSl5vb9zW83YlTr6bVsBWW81MLwp5c-DP0N3QzSg8QN_TjW1hwVhf1sYgD20) When was the last time you felt like you had no idea what you were doing? Join Wil and Ryan as they break down why feeling like a fraud is actually a normal part of Founder life. Thanks from the Startups Team, [Startups-employee-avatars_Wil-1] Wil Schroter Founder, CEO and Startup Sensei [Startups-employee-avatars_Ryan] Ryan RutanCMO and Man with the Golden Podcast Voice [Startups-employee-avatars_Ben] Ben SheidlowerSenior Copywriter and Part-Time Food Photographer Startups.com, 1322 Manning Parkway, Columbus, OH 43065, USA, (800) 997-9714 [Unsubscribe]( [Manage preferences](