>"Also please note as just a key employee we were going to give him 3-5% equity in the company."
A key employee who is putting $50,000+/year into your company is getting 3-5%?
Are you really worth $1million to $1.5 million after a year and will you be worth twice that next year...just so he breaks even (assuming he is only working 2000 hours a year)?
Sorry, but if you are losing clients then you and your cofounder aren't selling coal in Newcastle, and the fact that the programmer isn't welcome in the office and is being blamed for all the problems raises a question about who is actually a dick.
A key employee who is putting $50,000+/year into your company is getting 3-5%?
Are you really worth $1million to $1.5 million after a year and will you be worth twice that next year...just so he breaks even (assuming he is only working 2000 hours a year)?
Sorry, but if you are losing clients then you and your cofounder aren't selling coal in Newcastle, and the fact that the programmer isn't welcome in the office and is being blamed for all the problems raises a question about who is actually a dick.