He feels ownership in the company. I don’t have the context to why, maybe he has helped build or direct the company from his perspective. Maybe not.
Seems to me like you don’t want to give him that portion of the company, so I’d be expecting that employee to leave. Do you want that?
> He’s done real work for you in that time.
…and he’s gotten real (competitive) wages.
> I’d be expecting that employee to leave. Do you want that?
I’d rather that than give away stock and not feel good about it.
This is true but there is also a huge difference between 97% and 3%
He's been with you for 7 years, there is nowhere for him to go in the company.
Competitive wages aren't everything. Having some variety in life has its own value.
It's time for him to move on unless you want to give him a reason to stay.
You have to decide if replacing him will be worth it or not.
We don't have the details though so you will have to assess the value, but you need to stop trying to make this about you.