Re:Ask HN: CTO and Product Engineering Manager
by sixtypoundhound on Saturday October 22, 2011 @08:52PM
(#3144773)
This is painfully simple.
You and your friends own 95% of the company, with what sounds like little or no outside investment.
Any advisor with 5% of the company who proceeded to displace a founder with a member of his own family should be immediately dismissed, with predjudice (eg. strip him of his shares and any board voice, if legally possible).
He is a hired hand, with minimal skin in the game. Unless the family member is supremely overqualified (eg. started a company of his own and had a successful exit), this is self dealing of the worst sort. The optics alone merit dismissal - speaking as someone who has consulted at the highest levels of major companies, a good advisor should avoid the mere appearance of self-dealing, let alone actively promote it's occurance.
You and your friends own 95% of the company, with what sounds like little or no outside investment.
Any advisor with 5% of the company who proceeded to displace a founder with a member of his own family should be immediately dismissed, with predjudice (eg. strip him of his shares and any board voice, if legally possible).
He is a hired hand, with minimal skin in the game. Unless the family member is supremely overqualified (eg. started a company of his own and had a successful exit), this is self dealing of the worst sort. The optics alone merit dismissal - speaking as someone who has consulted at the highest levels of major companies, a good advisor should avoid the mere appearance of self-dealing, let alone actively promote it's occurance.