I agree this is pretty ridiculous. It does make me wonder though, what is the appropriate way to bring people on when you can’t pay them? I.e. you have no money and are just starting out (1-2ppl), and need someone to help? Do you just make them a co-founder? Or can you structure an employment agreement that grants a substantial percent of equity with a guaranteed salary starting X months after start? I ask because I’m wondering how companies that bootstrap without investment grow headcount.
Edit: I guess I should have been less ambiguous, I wasn't really talking about an employee/employer situation, I agree all work should be paid for. Now that I think about it more, I guess the scenario I was describing was 1-2 people working on a project, and then getting someone else in their immediate circle (i.e. friend, connection, etc) involved. I guess this person would then be called a co-founder, since they are assuming similar risk as the 1-2 original people. My question was more, how have others structured equity for those people, (co-founders?) who join significantly after inception?
Edit: I guess I should have been less ambiguous, I wasn't really talking about an employee/employer situation, I agree all work should be paid for. Now that I think about it more, I guess the scenario I was describing was 1-2 people working on a project, and then getting someone else in their immediate circle (i.e. friend, connection, etc) involved. I guess this person would then be called a co-founder, since they are assuming similar risk as the 1-2 original people. My question was more, how have others structured equity for those people, (co-founders?) who join significantly after inception?