My co-founder still has the capacity to run our finance seat, but he has completely lost his drive and is simply coasting while drawing a massive salary. He gets defensive when I bring up his declining engagement. How do I handle a partner who has the capability but no longer wants the seat?

Question

Tyler Smith · Accepted Answer

This is a classic GWC™ issue where a leader gets the seat and has the capacity, but no longer wants it. In the EOS® framework, wanting the seat means having the genuine passion, drive, and dedication to perform the role every single day. Coasting is not an option on a high-performing leadership team.

You must have a candid, unsentimental conversation outside of your tactical meetings. Address the issue using the Accountability Chart as your objective guide. Lay out the specific roles and responsibilities of the finance seat and show him where his daily engagement is falling short.

Do not let him hide behind his status as a co-founder. Explain that while his equity ownership is secure, his operational seat must be earned every day. Draw a clear line between being an owner and being an employee.

If he no longer wants the daily stress of running finance, help him transition out of the seat gracefully. He can step down from operations and retain his shareholder status or board seat.

Replace him with a leader who fully GWCs the role and is hungry to drive the company forward. Continuing to tolerate a disengaged partner in a vital seat sends a terrible message to the rest of the leadership team and stalls your business.