He’s the Tech guy. I’m the CEO.
We just got accepted into a pretty notable accelerator. All the funding we need will be given to us once we complete the project, but all of the problems I’ve been having with my cofounder for the past 8 months are about to boil over. I take accountability for letting it drag this long. But now, we’re on the cusp of a breakthrough and about 6-8 weeks from a completed product and getting funded … Here is a list of the things that are starting to outweigh the pros.
Red Flags
1) Showed up to an investor meeting uninvited (he was not invited by the investor because the first time he tried to throw me under the bus in front of the investor and he was new to the team – investor just didn’t like him). Ignored it at the time, because sometimes people just don’t mesh.
2) Stormed out of an advisor meeting when the advisor asked if he would write a list of project milestones (he still hasn’t – 5 months later). I’ve let that pass because we have other technical issues.
3) Had a tantrum in front of an investor about his political beliefs.
4) Read the legal documents, replied in legal jargon. When updated to the changes he requested, he claimed he couldn’t understand the documents or afford an attorney so he won’t sign anything.
5) Wrote an advisor privately and the advisor called me and said, “Please tell him not to call or write me again.” Without explaining what was written, when I confided to the advisor I was considering letting him go, he said, “good.”
6) Upon agreeing to the commitment stated he was a Full Stack Developer –> He can’t do front end, but as funding is on the line, he told the accelerator that he suddenly can do front end. Which is it?
7) Constantly talks about equity.
Pros
1) He is polite and charismatic when meeting people initially (before he begins to talk at length).
2) He has completed a good portion of the work. (Although none of it matches what I’ve asked for, there is something to show).
Cons
1) He’s insubordinate.
2) He doesn’t follow directions.
3) He refuses to sign the paperwork necessary to seal the equity agreements and other terms required for funding.
4) He’s unpredictable and emotional (plays the victim each time he’s asked to be held accountable).
5) Expects us (CEO/CMO) to hire people to do the work that is “beneath him”.
6) He’s paranoid – He asks to be present at every meeting and when he attends, he makes it a point to criticize my judgement and point out what he thinks when investors could give two shits as often his thoughts relate nothing to the company.
7) He’s not willing to chip in and help anywhere else and if he does, he complains.
8) He spends money without asking or sending receipts. When I ask for receipts, he says ok, but never sends them.
9) He doesn’t check, read, or reply to emails.
10) If someone outside of the company has an opinion, he values that and sticks to what they say rather than directions I provide.
11) He doesn’t listen.
12) Coaching only gets applied 25% of the time. Doesn’t take notes.
If he walks away or I fire him, he could go and try to build the business on his own. The people who have had faith in me thus far (Advisors, Mentors, Investors) will take a step back from me because I don’t have a replacement and I let him go before the product is finished. Lose our space in the accelerator. Most importantly, they will question my judgement as I trusted him.
If I keep him on board, I will get more gray hairs, have a portion of my company lost to someone who only wants a quick exit, continue to hold the legal documents hostage until right before funding comes through in a pathetic attempt to renegotiate terms in his favor, lose my CMO (who works really hard), and effectively lose my power in leadership as he’s not listening anyway.
Should I fire him? Or should I keep him on until the product is delivered? What’s a fair amount of equity to give him in both cases? Can someone rebound in the eyes of their mentors/advisors after firing someone without getting what you need from them first?