Should the Computer Science Guy Be CEO?

compuguy84 asks: "I'm a Computer Science major. A Finance Major friend and I are starting a business based on an innovative idea I had. I came up with the concept and developed the overall model we would use. He loved it, and we've been working on our business plan ever since. We've both donated our respective expertise, covered major ground, and agreed from the start that everything will be split 50-50 (ownership, power, etc). Unfortunately, the time has come to incorporate, and potential investors have advised against assigning Co-CEO's. So who should be the CEO? Should the Finance Major get the job based solely on his Business knowledge, or should the Computer Science guy get the job because it was his idea? We've both have shown ourselves to be savvy business folks, but I don't have the 'schoolin'. All signs so far point to giving him the job, but I can't shake the feeling I'm getting robbed. If it was my idea, shouldn't I call the shots at the end of the day? Has anyone been through this? What did you do?"

Comments

There are plenty of shots to go around

[SeanTobin]

Seriously, if this is anything big enough to where you have investors, let your friend be the CEO. Go ahead and take on the role of CTO or whatever 3-initial title you find appropriate.

You're going to have enough on your hands just making sure that your idea gets implemented correctly. Let someone else handle the issues of licensing, stocks, quarterly filings and investor reports. Do what you each do best. Don't let your friend muck with the servers, and don't you go stepping in the books.

That doesn't mean that you should give him free reign or that he is more valuable. Make sure that if you agreed to split 50/50 in the beginning, that you are still split 50/50 as far as profitability and ownership goes. Just make sure that you're clear that if there is a technical issue to be resolved, you are the final word. Also make sure that you understand that a Finance Major should have the final word on financial matters.

As far as splitting "ownership, power, etc" don't bother. Again, let each of you do what he/she does best. Let your friend have all the "power" on the corporate side of things, and you have all the "power" on the technical implementation side of things. Leverage your strengths and don't let jealousy get in the way of bringing something to life.

And remember - keep him away from the damn servers!

Re:There are plenty of shots to go around

[ePhil_One]

You're going to have enough on your hands just making sure that your idea gets implemented correctly. Let someone else handle the issues of licensing, stocks, quarterly filings and investor reports. Do what you each do best. Nonsense. This was his idea, he needs to be the CEO because he has had the strategic vision to see the viability of the product. Make the other guy CFO and have him deal with the Financial matters you mention like a CFO should. A company needs a CEO and a CFO, the CEO will not have time to do the job of the CFO too. Mind you, the CEO will also not have time to do the work of a CTO, and pretty soon he's going to have to throw off that part of his job.

CEO? Sounds like a lot of work

[LunaticTippy]

I wouldn't want to deal with the bs that a CEO has to deal with. Meetings, dressing the part, pandering to investors, etc.

If you allocate ownership equally he won't have more power than you do. Plus, you can use your tech skills to gather incriminating evidence you can use to blackmail him to your way of doing things.

get VERY used to saying "no" to suggestions

[linuxbaby]

Tell the potential investors that this really is 50/50, and refuse to compromise on that. It would be a fatal mistake.

In business, you'll ALWAYS have well-meaning people suggesting you go directions you don't want to. Push back. Show some backbone. Don't let others dictate your future. This is YOUR company, ONLY YOU decide how it's going to go. (In this case "you" plural : the both of you.)

ESPECIALLY at this early stage, you need to get VERY used to saying "no" to others' suggestions.

P.S. I'm "president and programmer" of my 60-person company. Yes, a computer guy can make a good CEO.

Re:get VERY used to saying "no" to suggestions

[BewireNomali]

from personal experience, VC guys shy away from 50/50 situations for two reasons: 1) that results in stalemate... it conceptually ends in deadlock should principals disagree; and 2) it suggests that the participants in hand are less than honest about their respective contributions to the relationship, which means there could be trouble ahead.

I started my (independent pharm research) firm and took Chief Analytics Officer. My CEO is a finance guy who worked at a pharm for ten years. It was shaky, but I got three guys who had significant pharm experience and let them run the company and I was responsible for overseeing data collection and analysis.

Finance guys speak the same language. Let them deal with each other.

From personal experience, finance and management guys deal in broad strokes. Engineers and science guys are by nature pointillists, driven and consumed by meticulous detail. By very nature, these two types are diametrically opposed. Nothing good comes of the science guy pretending to be a manager (although it would be easier for a science guy to pretend at managing than the converse).

Also, nothing infuriated me more than having to sit through insufferably boring finance meetings. I longed to be in the lab, where I knew what the fuck was going on, what made sense... it was my domain.

I'd suggest that you consult with other VC guys and get the sense of what they say, but my personal opinion, from observation and experience, is that there is a very good reason for the disparate disciplines. Don't underestimate the value of a strong finance person with good market vision and what sounds like foresight (to get involved with your idea and invest time and energy and effort into it). In order for it to be the best it can be, refine your concept, and let him troll for cash.

Who has more business sense?

[Anonymous Coward]

I know lots of CS people who are Ferengi, and I know lots of finance people who are numbers geeks. The person who has more business sense - capitalism, sales, greed, and also management skills - should be CEO.

DO NOT do anything 50-50 in your company. 50-50 is the road to misery. At the end of the day, one of you is going to have to be the one with the final authority, and the final accountability. Make somebody 51 and somebody 49. If you disagree, Mr. 51 makes the call, and gets the blame. In a 50-50 environment there is uncertainty about who makes the decision, and uncertainty about who is held responsible. This is not the way to run a business.

Re:Who has more business sense?

[theobscurest]

I'm not sure why this was modded down, but I have to agree with this. I founded and own a business with a partner and we were advised to do exactly this 51/49 split. Although my business partner is one of my best friends, we have covered ourselves well through our operating agreement, in the event anything bad ever happens. Also, if the two top people (who are at the same level in our case and presumably in your case as well) cannot agree on something, decisions can still be made by the person holding 51%. In our case, it made additional sense to do it this way, since if I, as a woman, hold 51% or greater ownership in the business, it is legally a woman-owned business, which may be some advantage for us in the business world.

Re:Who has more business sense?

[jthuck]

I couldn't disagree more. The difference between 51/49 and 50/50 isn't 2%; it might as well be 99/1. My father started a business 51/49, and at one point "the other guy", the one with 51%, decided to vote my father off the board with his majority stake. The board then voted to fire him. At that point he held 49% of a private company where he had no say.

It all worked out in the end; my father started his own business (100/0 :) and within a month already had most of his customers begging him to do work.