[mchannon]

I'd consider actually doing it. Consider who's the dog and who's the tail- is your company making him rich or is he making your company rich?

By transitioning him to equity, you still get the benefit of his continued hard work but now the company's profits don't all go to him. Don't drop it in his lap- set it up with a standard 4-year vesting schedule, but I'd actually do one better and go above the 30% he asked for. (Maybe 33%).

I seriously doubt you could replace him under the same terms. Find someone else, sure. Find someone who performs this well, not as likely.

You have a golden goose here. Don't begrudge him his grain. Just quietly collect the golden eggs, keep him so happy he lays more eggs, and give him zero reason to think it's only a matter of time before you slaughter him for meat.

[simantel]

Yeah, I agree. The company was started in April, and the consultant joined that same month. Obviously you, Jeff, know better than we do, but it seems likely that he's been a huge part of the company's success. What would happen if you lost him?

[jeffrese]

I would not be where I am today if he wasn't a part of this. What would I do if I lost him? Answer is I don't know. The company would not implode and we would keep moving forward but at what cost?????

Talking this out helps. Thanks for the input.