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HI’m being offered a Director of Marketing Operations position, but have some trust issues with the founder based on their past behavior. What precautions or agreements should I request to protect myself?
I’m Indian, so while I appreciate everyone’s suggestions, I’d especially value input from fellow Indians who might understand the specific legal/employment context here better. Thanks!
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SHey, Indian lawyer here. If you’re considering a Director-level role but have serious trust issues with the founder, it’s absolutely wise to take proactive legal precautions. Here are a few suggestions you should consider negotiating or getting in writing:
1. Detailed Employment Agreement: Clearly outline your role, KPIs, reporting structure, and termination clauses. Avoid vague language. Have a lawyer vet the document.
2. Indemnity Clause: As a director, you carry legal liability. Ask for a clause indemnifying you against actions taken under the founder’s instructions, especially if you suspect questionable practices.
3. D&O Insurance (Directors & Officers Liability Insurance): Ensure the company has this and that you’re named on it. It protects you against personal losses if you’re sued for alleged wrongful acts.
4. Board Minutes & Approvals: If you do accept the role, insist on proper documentation of all key decisions. If the founder is erratic, this protects you from being scapegoated later.
5. Exit Clause & Golden Parachute: Ask for a well-structured exit option—maybe a 3–6 months notice period with severance pay. If you’re being brought on to make things work, you deserve some protection if things don’t.
6. Equity/ESOP Terms: If equity is being offered, have clear vesting schedules and protection in case of termination without cause. Avoid promises made “off the record.”
7. No Personal Guarantees: Never sign anything that makes you personally liable for company debts or obligations, especially if you’re unsure of the founder’s ethics.
Bottom line: trust your gut. If you’re already feeling uneasy, document everything, and keep communication clear and minimal outside formal settings.
Happy to clarify anything if needed!
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QDon’t take an offer if you have reasons to not trust the founder. Listen to your guts. This is the last big opportunity you’ll have. Evaluate the risks and stakes and decide considering the best and worst case scenario and their probabilities.
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HThanks for the honest feedback. You’re correct that one can’t just dismiss gut feelings. I’m balancing the chance against the trust issues and creating those best/worst case scenarios you spoke of. Have you ever found yourself in a comparable situation? What finally led you to make your choice?
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QIt’s in the nature of a snake to bite. I don’t think people change without punishment. The rich never change on top of that. I choose business partners like I would choose a spouse. I speak with others they have worked with. I see if they can make long lasting relationships. Opportunities come and go, but a professional relationship without respect and trust is already off to a bad start.
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HThat’s truly perceptive about trust. You’re right about the foundations needed. If I do go ahead despite my reservations, what specific safeguards or understandings would you view as absolutely essential in my contract to safeguard myself?
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QNot sure I can answer that without knowing all details. Try feeding all information to chstgpt and asking. Ultimately in India employer has most of the cards
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QNAL but a friend is going through this. Director at a firm that couldn’t pay back loans, vendors and employees not through fraud but bad decision making.
He’s had to a hire a lawyer to respond to the myriad notices that are coming his way.
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HThat must be very difficult for your friend. puts a lot of things into perspective. Did he wish he had negotiated something specific in his contract, or did he have any safeguards that worked in his favor? I hope he will soon overcome all of this bullshit.
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QHe wishes he wasn’t a Director. Most of his mental capacity is now allocated to handling court notices.
He took up the Directorship because he thought it’s an upward move in his career.
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