Investors don't like it and often try to pressure companies they want to invest in into "clawing back" such stock. But while 40% might make them say no to a company they liked, I don't think 8% would.

The investors will claim pretty convincingly that it makes a big difference to them though. And that will put a lot of pressure on your (presumably inexperienced) cofounders, who will consider you a jerk for not giving in.