So this may be a long shot, but there are a number of smart folks here, and I’m hoping someone will have some insight. Cliff notes at end.
My fiancee left her job in the financial industry (in NYC) to help her dad/with her dad’s company. She is VERY good at it. She’s smart, she’s innovative, she’s generated millions for the company. She’s technically a VP. Everything should be going great, right?
No. The problem is her dad. He’s a control freak who’s happy to let her do the work until the last minute, then jump in at the end and put his “I did this” stamp and take credit. An even bigger problem is that he doesn’t pay her constantly. In fact, he really only pays her when it gets to the point (like it is now) where she’s threatening to leave, and she still doesn’t get all the money owed. Right now she’s owed at least 10k based on their current, unfair, agreement.
I’m in a transitional phase myself, and started doing a couple hours of consulting work for them a week. They’re a month behind in paying me.
We both went on a trip this Christmas to visit my dad who lives abroad, and basically have both ended up in positions where we have no money because without being there to make sure something happens, neither of us have gotten paid. It’s made our trip very frustrating. I’m used to working with/for people who pay you when they say they will, in the amount they say they will.
She’s invested a lot of time and energy in building this company, and it could really turn into something great for us, if she were ever given the reigns as promised, and if she were ever paid, as promised. She does not want to walk away.
However, we’re at the point where she’s ready to walk away. What we’re willing to do is create a new contract for the terms of her employment/relationship with the company. Something very generous, since the company will pretty much tank if she leaves. We are talking a share (maybe 20-30% of the company, it’s all privately held by a single individual right now) of the company, a decent salary, with a bonus structure tied to the growth she generates, as well as putting her in a position where she “has the keys” and is able to make sure that she, and the other employees get paid, on time, in the amounts agreed upon.
This is where we need advice. How does one structure such an agreement? Do we need a lawyer, an accountant, or both, to help us structure this? Or maybe that’s premature: first we just need to put forward the proposal. What’s a good way to link salary/bonuses to company growth?
Any advice on the situation is much appreciated.
Fiancee has generated millions, and has made her dad’s dying (and mismanaged) company profitable.
Dad is a habitual lair/manipulator, won’t pay monies owed, will say whatever is necessary and pay “just enough” to string her along, and is a total control freak (likes to have his hands in everything: not do the work).
We’re looking to structure a contract (or whatever would be necessary) to give her equity in the company, guarantee she gets paid and is able to make sure other employees get paid on time, in full. And create something in the structure to link her pay to the growth of the company (so when she single-highhandedly generates $1million+ in profit for the company, she sees some of it).
Need help with the ‘contract’ or advice on the approach.
To be clear, she is ready to walk away, right now. Our Christmas trip getting ruined was the final straw, so she’s ready to make demands that are borderline unreasonable. It’s also a waste of time if the arrangement cannot be legally enforced.
Edited because cliff notes are not footnotes.