Note I’m posting this on behalf of best friend not on Reddit (if allowed). Hi, I’m currently working on a new project with a co-founder. I have been doing most of the work, pulling everything together for the business.
As we prepare for fundraising, I’m connecting with VCs and starting all the conversations. My co-founder only shows up for calls to give feedback on my work (which is another problem I need to tackle but not the purpose of this post) and only really invests any time when there are “interesting” things to do, like meet with partners, VCs, etc. So, I pretty much do 90% of the work. Again, I have to address this.
But so, my question (and concern): I noticed that, after we had agreed to equal yearly salaries (without addressing the work involved, which I feel I need to do), they added a significant amount as a “location bump” to their salary in our financial plan without consulting me. We don’t live in the same cities, and their city is more expensive than mine (although my tax rate is higher), but I can’t help but feel like this isn’t right.
I would love to know if receiving extra income because of location is common, what it’s based on (e.g., can it be based on higher taxation or is it only about the cost of living?), and your stance on co-founders and salaries. Thanks!
And you expect things to change after your have raised?