Thinking about making long term and employees partners.

**balegar** · 03-09-2011 08:41 PM

Hi -

I have a profitable software consulting business, and after almost 10 years, I have a number of employees that have been with me a long time. While I give big bonuses at the end of the year, I would like to give them a share of the company so that they feel they have more at stake and take on more responsibility.

So I am thinking of creating the rank of partner. How does one go about that? What percentage of the business is reasonable to put into an option pool? What should be the vesting time?
What are some metrics by which to measure if one is worthy of being a partner?

Thanks.

**Gaulkin** · 03-09-2011 08:48 PM

Do you want to be rich? If you do... own 100 percent and forget the rest! Its that simple.

**ronrule** · 03-13-2011 09:20 AM

Don't do it!

If they've been with you a long time, that means they already like the terms of their job. Don't ruin a good thing. If you're going to take the company public and want to give them some stock that's one thing, but don't give up shares in a privately held company unless they're buying them.

**Gaulkin** · 03-13-2011 09:16 PM

Originally Posted by ronrule

Don't do it!

If they've been with you a long time, that means they already like the terms of their job. Don't ruin a good thing. If you're going to take the company public and want to give them some stock that's one thing, but don't give up shares in a privately held company unless they're buying them.

I wouldnt even sell them the shares, just another mouth you have to listen to at the end of the day. Control is everything, you have to be able to turn on a dime at all times.

**KateB** · 03-14-2011 02:23 AM

Originally Posted by ronrule

Don't do it!

If they've been with you a long time, that means they already like the terms of their job. Don't ruin a good thing. If you're going to take the company public and want to give them some stock that's one thing, but don't give up shares in a privately held company unless they're buying them.

Exactly the reason they have continued to work with you is they like the work and since you have also paid big bonuses to them it means they have always given there 100%. Therefore I see no reason of allotting company's shares to them.