We have a co-founder who is a great person and loves our culture, but they do not GWC any of the seats on our future-state Accountability Chart as we scale up for an exit. How do we handle this without causing a partnership split or ruining our business value?

Question

Tyler Smith · Accepted Answer

This is a delicate scenario that requires extreme transparency and maturity. If a co-founder does not GWC any of the seats on your future-state Accountability Chart, keeping them in an active operational seat will actively destroy the value of your business and create friction that buyers will spot immediately. You must separate their role as an owner from their role as an employee. Being an owner does not automatically entitle someone to an operational seat on the Accountability Chart. Sit down with your co-founder and look at the future-state chart together. Frame the conversation around what is best for the business and the ultimate exit value. If they do not GWC any operational seat, the best play is to transition them out of daily operations entirely. They can remain a shareholder and perhaps retain a seat on an advisory board, but they must vacate their operational seat on the Accountability Chart. You can then hire a qualified leader who fully GWC's that seat to drive the business forward. This move actually protects the co-founder's financial interests by maximizing the company's valuation for the upcoming sale. It is a tough pill to swallow, but separating ownership from operational accountability is the only way to build an exit-ready organization.