Startups Anonymous Est. 2013 · Read-only archive
Questions

As CEO/founder of an early but promising startup, should I consider hiring a top-notch CEO-type to take over my role?

I founded a fintech startup in Detroit suburbs, have a small team built, great early validation of our product, and starting to expand quickly…but I don’t think I’m cut out to be CEO.

I’m tempted to hire a rockstar talented individual to come on board, take over most of my responsibilities, and reduce my hours/involvement/stress significantly.  I’m confident that said rockstar has just as great of chance of making us successful.  Should I hire him and step aside? I’m even willing to part with some of my personal equity to give to him.

 

10 answers from the community

AAnonymous· Jun 24, 2014

Absolutely! If you feel that is the way to go, follow your gut. I have seen many companies fail because its founders refuse to give up their position of power, so you should go for it and hire someone capable and motivated.

AAnonymous· Jun 24, 2014

Are you sure she's a rockstar? Lots of posers in this business space.

AAnonymous· Jun 24, 2014

++++

AAnonymous· Jun 24, 2014

Hire the CEO but stay involved - very involved - in whatever your role will be. If your looking to find someone to take over a lot of your involvement/hours that would raise some major flags.

AAnonymous· Jun 24, 2014

Don't confuse someone who swam with a strong current to be a great swimmer.

Rock stars are drastically overrated.

AAnonymous· Jun 25, 2014

Hire them, but don't make CEO. Make them Vp operations, president, coo, or whatever.

Let them earn the CEO role over the course of at least 18 months, up to 5 years...

AAnonymous· Jun 25, 2014

++++

Make them earn the role, and make sure their compensation/equity/options are tied to some performance milestones (and if they fail at too many milestones, they get out without any golden parachute and return all equity/options/warrants)

AAnonymous· Jun 25, 2014

+++++++ totally.

AAnonymous· Jun 25, 2014

You need a good manager, a star as you said.

Keep the decisions at the end.

Make him start as a COO with vested equities.

AAnonymous· Jun 28, 2014

Ive just been through this and am very happy with the experienced performer coming in and providing us with his maturity. But remember, the original risk and ideas is what it means to be an owner. Therefore, we linked the new guy's equity and pay to performance. He is happy and we are too.