One founder works 80 hours/week while the other works 20, should equity be equal?

i went through the same thing with my co-founder. our solutiion was: equity stayed fixed, but salaries were different. i got 2x salary, he got normal salary.. then then the business grew equity value increased we both won but the difference in workload didn't really matter in the end

But the question is: has this effort gap existed from the start or did it emerge over time? If it was there from the beginning, why was the equity kept equal? If it emerged later, why wasn't there an 80-hour commitment for the founder working less?

General rule: equity is divided by risk and capital, not effort. Salary is divided by effort. So equity can stay equal while salary differs. Keep it in writing, set a monthly salary scheme so no one compares.

Short path: sit down with your partner for 1-1 hour and agree on this: 1- Equity stays 50% for the first 6 months adjust salary, 2- Review at 6 months, change equity? 3- Keep everything in writing. These simple talks prevent most issues.

These kinds of effort differences are often ignored at the start. You did the right thing by bringing it up and talking about it. Many partnerships fall apart because of this. Put it in writing, ensure fairness, and move forward.

Buddy in business partnerships equity doesnt see effort it only sees risk. btw but thats the theoretical world. In your world if someone working hard doubles the revenue, it will naturally look unfair when splitting equity. Solution: salary difference, keep equity fixed does that ensure fairness for everyone?

note: I wrote this based on my own experience, it might not apply to everyone.

I'm in the same situation, that's why I'm asking. When making a decision, first look at what data you have on hand.

If I were you, I'd go this route.

The opposite happened to me that's why I'm writing. Don't hesitate to ask; those who don't ask always pay more.

This is my opinion, I'm not claiming it's absolute truth.

You're right.

I agree.

i disagree with you on this point. give trial work but pay for it; free trials don't bind anyone.

proven by experience.

Thanks, this was very helpful. If IP assignment to the company isn't written from the start it can't be collected later.

If you have questions, write them; I'll answer as best I can.

i agree, and I'd like to emphasize that. don't hesitate to ask; those who don't ask always pay more.

when making decisions write down the worst-case scenario too not just the best then tbh hope this helps.

Same here.

If you're going this route, sort this out first. If you don't write this down from the start it leads to arguments later.

i think differently then proceses without records never improve because you dont know what to fix.

most time waste accumulates in tasks waiting for approval. tbh i'm also curious if anyone does it differently.

correct.

Let me summarize what's been said so far. Give trial work but pay for it; free trials don't bind anyone.

Thats all sorry if I went on too long.