This might be a derail, but what is the normal procedure by which one negotiates for a signing bonus or a severance package? Some sample verbiage would be nice.
Depends on the country (UK for example, severance is more or less required by law). In the US, I would suggest something along the lines of: (if it's in written form)
Signing bonus: [brackets is some notes]
"Dear CEO,
I appreciate the offer of COO for X amount. [be polite] I've taken some careful consideration over the role and what it entails for me personally. [remind them you're a human] I've reviewed not only this offer but many others that have come as a result of my merit, ambition, and drive to enable the success of any organization. [remind them why they hired you and why its gonna change their world] I am prepared to move forward with you and your team, however ask that a bonus upon signage be applied to my overall compensation package. [in general, I would suggest leaving out the "why" - let them ask you personally and then go into convo]"
Severance: [brackets is some notes]
"Dear CEO/HR person,
I appreciate that a decision was made regarding the future of my relationship with the business and you've done everything in your power to ensure that I walk away standing proud of my merits. [be polite and thank them for being nice people] Unfortunately, as demonstrated by your actions to let me go, I am not a match for the future success of XYZ company. I would, however appreciate some form of severance upon my departure. As you can imagine, having unexpected circumstances can lead to personal hardship. This situation is clearly not ideal in the short term for me and my family. [remind them you're human] Any appreciation and goodwill you may have towards my situation will go a long way. Thank you for your time"
Note - these are nowhere near perfect or will ever be contextually correct, but are a good starting point.
Employee #1 isn't going to get a signing bonus at a startup. What you should get is equity. Then, you need to negotiate an exceleration clause if you are dismissed without cause. Basically, you should vest a slug of stock immediately upon being fired.
But, the only real answer to this question is to talk to a lawyer. And, don't be afraid to negotiate aggressively. After all, this is your first chance to show your new bosses that you're a tough negotiator. Be fair but never be a pushover.
I'd get the salary etc sorted, then negotiate the secondary benefits: I'd bring up a sign-up bonus (and golden parachute) then. As compensation for the risk, and the rights that you've built up with your current employers.
At C levels I'd expect someone to bring it up in negotiations.
