Business Pitch Dictionary by pitch.dog
Founder & employee equity · Working

Good leaver

Also called: good-leaver status

ELI5

Someone leaves for an accepted reason and keeps better equity treatment.

Used in conversation

“Good-leaver definitions should be precise and jurisdiction-aware.”

Definition

A person leaving under circumstances that receive more favourable equity treatment under an agreement.

Here “Good leaver” means: A person leaving under circumstances that receive more favourable equity treatment under an agreement.

Pitch context

You will see “Good leaver” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.