Our VP of Sales brings in sixty percent of our revenue, but they are a toxic bully who openly violates our core values. We are planning an exit in two years and are terrified that firing them will tank our valuation. How do we make this right person right seat call?

Question

Tyler Smith · Accepted Answer

This is the classic right seat, wrong person dilemma. Your VP of Sales has the capacity and gets the seat, but they do not share your core values. While it is tempting to tolerate their behavior to protect your revenue for a future exit, keeping a toxic high performer is a massive mistake that will ultimately destroy your company's value.

A toxic leader acts as a cultural cancer. They demoralize your team, increase turnover, and create a highly volatile environment. Prospective buyers are smart; they will easily detect this cultural rot during due diligence. They will look at your high employee turnover and key person dependency and discount your valuation accordingly.

You must make the hard right person right seat call. First, have a direct, documented conversation with them. Explain exactly where they are failing to live up to your core values and give them a clear, short timeline to correct their behavior.

If they do not change, you must terminate them, regardless of their sales numbers. To mitigate the short term revenue risk, use your Accountability Chart to immediately transition their client relationships to other team members or step into the sales leadership seat yourself temporarily.

True scale and value come from robust systems and a healthy, aligned culture, not a single toxic producer. Removing them will send a powerful message to your team, boost morale, and ultimately make your business far more attractive to a buyer who wants a sustainable, professional operation.