Decision
Michael and Tatem agreed on a revised equity split, per-client compensation structure, and profit-triggered equal salary for both founders. Indefinite royalty structure ruled out. Buyback clause added. OA to be signed by Sep 25.
Full compensation and equity specifics: see Owner tier.
Context
Tatem (Jolt co-founder) changed payment terms in the OA draft, triggering two sequential negotiation calls on Sep 21 (bf1cb23c at 8:09 PM, then 6accfa3c at 8:33 PM). Her core concern: her equity stake and income stability are misaligned. Prior proposal did not adequately address her contribution relative to Michael’s larger equity position.
Options Considered
- Tiered per-client fees ($3K first 5, $2K next 5, $1K after) — ruled out: creates royalty-like obligations that complicate acquisition
- 50/50 equity revert — discussed but not chosen
- Profit-triggered equal salary + increased equity + per-client rate (no indefinite royalty) — CHOSEN
Consequences
- OA needs to be drafted and signed by Sep 25
- Tatem adds control/decision-making language to OA
- Jolt comp structure now documented in Owner tier (supersedes the 35% row in team-comp.md)
- Alignment check needed: Jolt currently has lowest per-client profit and lowest equity upside for Michael among the three agencies; this structure is intended to realign Tatem’s incentives toward growth
Meeting files: Payment Terms and Equity Structure with Tatem, Jolt Equity and Compensation Structure with Tatem