I've observed many startup founders who are disdainful of employees who leave, ever, for any reason, and definitely don't want them to receive proceeds from any of the company's future successes.
I've observed many startup founders who are disdainful of employees who leave, ever, for any reason, and definitely don't want them to receive proceeds from any of the company's future successes.
Yes, there should be evolution on this front. It's a little lop sided, but not trivially easy to fix either.
These instruments are already very complicated.
This is like when engineers say something is going to take a long time because “there’s a lot of moving parts”.
The reality, IMO, is that employees do not have a seat at the table when it comes to negotiating ownership shares. And, predictably, they end up with the worst part of the deal.
Every time a company offers something 'non standard' - it's a huge legal expense and risk.
Very few startups can afford such things.
Like complexity in code scales exponentially, so too does potential legal outcomes.
There are a lot of bespoke things each company could do in light of specific situations, but it's just not worth it.