I assume he's diluting his own equity to make sure everyone has as equal of a stake in the company? That's the only way I'll accept this statement.
If you think of it in terms of babies and babysitters, it's clearly absurd to expect the babysitter to bend over backwards to help your child outside their paid duty. Yet the founders can't see it.
Eventually he might grow or has to grow out of it.
He doesn't have the work experience to understand the problem domain well enough to build a company to solve it and he doesn't have the life experience to apply what work experience he has had. I'd bet the money I'll net after the lockup on an IPO I'm in that close to 100% of the value of "his" company was built on that bed of VC funds and their connections he lucked into.
He's a cute anecdote for the company's marketing--that's the entire sum of his value. He's not likely to build another company or achieve any further success outside the VC bubble.
I question it too. As a cofounder, I strive to destroy this sort of attitude. Doing my part by example to establish that culture.
Proper incentives entice employee engagement.
Boards are typically stacked in the founders favor, so any reduction in pay would be the founders own decision. Which makes sense, because they want to keep the company that they have significant equity in alive.
I think you can make the case that that's not the sole criteria or highest criteria you should seek, but I've seen remarkable longevity in companies where people are willing to fake it til they make it. (Longevity defined here as keeping people employed and keep raising money when needed. Not changing the world or anything.)
“I started a company and I’m totally wild about it. It is my life. If it is not your life too then you don’t belong here.”
Founders are supposed to be obsessed with their company. (Though I question that too.) But demanding everyone else at the company be just as obsessed is doomed to hire children and sycophants and drive off professionals who have seen this movie before.