The role of the Grunt Leader is really just to keep track of all the inputs on the spreadsheets or Pie Slicer software
There are some issues with one person holding all the equity that I wasn't aware of when I wrote Slicing Pie
(I'm planning on fixing that in future updates).
Here is how you can handle your Grunt Fund and address issues of control, which I think is one of your concerns. Of course, you'll have to speak to your lawyer/accountant for professional advice, but here is a basic structure:
First, keep in mind that there are no financial benefits to equity ownership unless the company pays dividends or gets sold.
So, issue 10,000 restricted shares or membership interests to every
person who joins your company. In this case, it will be you and your partner. In a C-Corp each person can file and 83(b) election
. The restricted shares won't have voting rights, so the number of shares and the fact that each person has the same amount doesn't really matter.
You and your partner can vest one share each giving you both one "vote" for major decisions.
In your stock agreement you will want to include a "re-calibration" clause that will trigger in the event of Series A investment or cash-flow break even.
When the re-calibration is triggered, each person will vest in the number of shares that brings them into alignment with the Slicing Pie split. All non-vested shares would be forfeited.
This way you and your partners have maintained joint control of the company, properly managed taxes, and ensured that each participant has the right % of the company when the Slicing Pie model ends.
Remember, the Slicing Pie model addresses all possible scenarios. The allocation rules and the termination rules combine always leads to a perfect split!