I've been a CTO/CEO and have hired many people over time. Some of this has already been said, but:
1. Those jobs may still be open, reasonable people wouldn't hold taking another job against you. Work is work, and those who step back into discussion with you will show you a reasonableness that you will value more than before.
2. Situations like this is why sign-ing bonuses were invented. If you're COO of anything, you should also be able to negotiate a proper separation agreement, something like 6 months severance after 6 months of service. The signing bonus covers the initial bump, and then everyone has a window to see if things are copacetic. After that, it's a real relationship with consequences for dissolution.
3. You should be interviewing and considering companies as much as they're evaluating you. There's gotta be more to this story, some of which may be evident as you ponder what really happened. You've gotta develop that antennae. Asking to speak to a company's founders or advisors is a reasonable thing to do, certainly for a COO role that involves international relocation.
4. The "best guys" I've ever worked for f*cked me or our companies over. It's an important qualification to an extent, but character and vision and stability are secondary factors that will wag the dog, so to speak. Especially in startups. Startups are risky, and not always due to market forces or the brilliance of the business idea. Give yourself a good long notch in your work belt.
> Those jobs may still be open, reasonable people wouldn't
> hold taking another job against you
Also a CTO who has hired many people.
If I've made someone an offer, I want them. If they've had a better offer, that's ok. But if they've turned me down because it went nowhere, I still want them.
Agreed; a good company will stand behind a prior offer, within reason.
Twice I've gone back to someone who had given me an offer and said "I screwed up, would you still consider me?" a year later, and had an instant and very positive response. (I had to do a fake interview at one of those, but just to satisfy HR).
Market signing bonus language rescinds the bonus if the employee is terminated within a year. A signing bonus does not, as a general rule, insure against early termination.
Obviously, everything's negotiable. It doesn't sound like an unreasonable strategy to demand an "insurance bonus" of some sort if you're a high-value employee and the company is pre-revenue, or if your role commits your network to the company, as this person's did when he used his network to sell the company's product.
This might be a derail, but what is the normal procedure by which one negotiates for a signing bonus or a severance package? Some sample verbiage would be nice.
Depends on the country (UK for example, severance is more or less required by law). In the US, I would suggest something along the lines of: (if it's in written form)
Signing bonus: [brackets is some notes]
"Dear CEO,
I appreciate the offer of COO for X amount. [be polite] I've taken some careful consideration over the role and what it entails for me personally. [remind them you're a human] I've reviewed not only this offer but many others that have come as a result of my merit, ambition, and drive to enable the success of any organization. [remind them why they hired you and why its gonna change their world] I am prepared to move forward with you and your team, however ask that a bonus upon signage be applied to my overall compensation package. [in general, I would suggest leaving out the "why" - let them ask you personally and then go into convo]"
Severance: [brackets is some notes]
"Dear CEO/HR person,
I appreciate that a decision was made regarding the future of my relationship with the business and you've done everything in your power to ensure that I walk away standing proud of my merits. [be polite and thank them for being nice people] Unfortunately, as demonstrated by your actions to let me go, I am not a match for the future success of XYZ company. I would, however appreciate some form of severance upon my departure. As you can imagine, having unexpected circumstances can lead to personal hardship. This situation is clearly not ideal in the short term for me and my family. [remind them you're human] Any appreciation and goodwill you may have towards my situation will go a long way. Thank you for your time"
Note - these are nowhere near perfect or will ever be contextually correct, but are a good starting point.
Employee #1 isn't going to get a signing bonus at a startup. What you should get is equity. Then, you need to negotiate an exceleration clause if you are dismissed without cause. Basically, you should vest a slug of stock immediately upon being fired.
But, the only real answer to this question is to talk to a lawyer. And, don't be afraid to negotiate aggressively. After all, this is your first chance to show your new bosses that you're a tough negotiator. Be fair but never be a pushover.
I'd get the salary etc sorted, then negotiate the secondary benefits: I'd bring up a sign-up bonus (and golden parachute) then. As compensation for the risk, and the rights that you've built up with your current employers.
At C levels I'd expect someone to bring it up in negotiations.
Can you give some advice on how other positions can argue such risk mitigation? 6 months severance would get every Software dev/eng laughed out to the street. as far as my experience goes, signing bonuses are out too. Usually the company is eating a massive training cost for the first 6 months, saying to them "In addition to training cost, I want X risk mitigation" seems unlikely to be met with agreement.
Here's a fun fact for you. Under Canadian employment law/case histories if you as a senior management employee with many years of service are "romanced" away to a new company which then fires you... your years of service at your original company should be used to calculate your severance.
For management positions this means 1 month severance for every year of service.
So if you romanced an executive into joining your startup you and then fire them you could be on the hook for a very large severance package.
> 6 months severance would get every Software dev/eng laughed out to the street.
I believe the parent was talking about C-level positions. I don't know if that applies at a 2 person startup where everyone is a C-level but at larger companies you probably have lots of room to negotiate if you're taking that type of position.
1. Those jobs may still be open, reasonable people wouldn't hold taking another job against you. Work is work, and those who step back into discussion with you will show you a reasonableness that you will value more than before.
2. Situations like this is why sign-ing bonuses were invented. If you're COO of anything, you should also be able to negotiate a proper separation agreement, something like 6 months severance after 6 months of service. The signing bonus covers the initial bump, and then everyone has a window to see if things are copacetic. After that, it's a real relationship with consequences for dissolution.
3. You should be interviewing and considering companies as much as they're evaluating you. There's gotta be more to this story, some of which may be evident as you ponder what really happened. You've gotta develop that antennae. Asking to speak to a company's founders or advisors is a reasonable thing to do, certainly for a COO role that involves international relocation.
4. The "best guys" I've ever worked for f*cked me or our companies over. It's an important qualification to an extent, but character and vision and stability are secondary factors that will wag the dog, so to speak. Especially in startups. Startups are risky, and not always due to market forces or the brilliance of the business idea. Give yourself a good long notch in your work belt.