equityI’m just entering the startup world, I’ve been working at my current company for over a year and a half and I’m having doubts.
Back in April, I was offered a payrise and a letter of Intent stating that with the creation of the new company and product along with it, I shall be receiving a CTO role and a 5% equity of the company.
The issue with the letter of Intent is that the Company name specified is no longer the company that was created, they have since rebranded before the company was actually formed.
The new company has just been created and now the directors have told me that the roles will come about around investment time (April this year).
And as a bonus, I wouldn’t be paying any tax on the equity sue to entering an ESI? I don’t really know what that means, but from what I understand, I only get the 5% so long as I work at the company. (How would that affect me when they come to sell? Could they just fire me and reclaim my share?)
I am in a very good position in that a lot of work needs to be done before they can get investors involved, and, its very likely that without me, they wouldn’t get it done.
My directors have the ‘gift of the gab’ and as such, I’m almost always won over by what they’re saying.
So my questions: Is the letter of Intent worth anything? What questions should I be asking about all of this? Should I leave? I know that I can earn a much better wage elsewhere.
I realise that this is totally unprofessional but it looks as though I have lost the Letter of Intent in my recent house move, should I ask for another and be honest or just ask for a letter of Intent in the new companies name?
Thanks
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