Trying to compensate a part-time contractor to get founder-level equity (eg. 10%) in proportion to "time put in" would be bloody insane!
I'm arguing the contractor should be compensated fairly. We're going through this entire exercise because the founders don't want to pay the contractor a market wage. So the service that is rendered should either be structured as a loan (convertible or otherwise), or the contractor is compensated with shares proportional to the amount of work under a fair valuation of the company. Don't like those options? Pay the man for the work he did. What's the alternative? Work for free?
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I'm arguing the contractor should be compensated fairly. We're going through this entire exercise because the founders don't want to pay the contractor a market wage. So the service that is rendered should either be structured as a loan (convertible or otherwise), or the contractor is compensated with shares proportional to the amount of work under a fair valuation of the company. Don't like those options? Pay the man for the work he did. What's the alternative? Work for free?