Vesting is crucial for founders because it prevents a situation where a founder leaves the company and takes a significant portion of equity with them, which would be unfair to the remaining founders.

If you don't establish vesting for co-founders, a fallout can lead to dead weight on your equity table, making it hard to attract investors.

Founders need to be incentivized to continue working on their startup; without vesting, they could walk away with full ownership at any time, which undermines their commitment to the company.

Implementing vesting and cliffs protects the cap table and allows for smoother transitions if a co-founder needs to leave.

The CEO must have the authority to fire underperforming co-founders, ensuring accountability and effective leadership within the team.

Founder breakups can become contentious if founders haven't paid themselves, leading to leverage for the fired founder in negotiations.

Vesting aligns incentives among founders, ensuring they all work together to grow the company before any of them can benefit from their equity.

Every founder, regardless of their departure circumstances, should resign from the board and sign a release, allowing remaining founders to manage voting rights effectively.

If a co-founder leaves or is fired before their one-year cliff, it's typical for them to receive only a small amount of equity, usually between 2% to 5%.