Can I "rent" a Canadian Professional Engineer (P.Eng.)? [closed]

Question

I'm working with a startup in Canada, and we're at about the 18 month mark where we get to do our final sales demo. Everything has gone great so far, and we've grown the company from 2 employees to 20, plus the CEO.

Because of the nature of our work (software security), we had to have two Professional Engineers on staff. It's mainly because it's easier to have ethical, trained people with professional licenses (and liability insurance) to sign off on various forms relating to privacy, guaranteeing our employees don't have hidden criminal records (background checks miss a lot, actually), etc.

The CEO of the company, just days before this final demo (which would yield a lot of cash for the company), did something that basically angered all the technical employees: did a stock split (I have no idea why? Why would this be a tactical advantage?), and awarded stock to the senior employees entitled to equity, but with conditions (stock must be held for 4 months, and can't be sold until the CEO sells his portions).

• The first P.Eng., "Ted", simply walked out the front door, and said we'd be hearing from his lawyer, and smashed his company phone on the floor. I can't find the SIM or SD card from the remains either. He won't answer any calls.
• The second (junior) P.Eng., "Federico", is still checking into work, but indicated that he doesn't feel confident on signing off on Ted's work in his absence, and won't answer a single question straight (dodges the issue or gives a textbook answer).

How can I get a Professional Engineer on short notice? Are there any that will learn a product and sign off on it on short notice? It's not the sort of thing I can find in the Yellow Pages easily. Also, does their licensing body, "APEG", have any means to force a worker back to work if they are screwing over a company?

Also, why would the CEO do a stock split? How does that help anyone? Can it impact my own bonus/equity?

Answer 1

The CEO has taken actions that, rightly or wrongly, senior technical employees believe reduce their financial prospects if the company does well. At the very best, the changes were explained badly. At the worst, the employees' impression is correct.

That has led to the loss of at least one key employee, possibly more as people find new jobs.

Personally, I would assign minimal value, if any, to "can't be sold until the CEO sells" shares, and look at my percentage of the company on that basis. I have accepted dilution of my shares in a start-up when the purpose was to get more financing, but I have never even been asked to do so to advance the CEO's personal interests. This is the CEO's mess.

Tell him that, even if you can hire a PE under the circumstances, it will take significant time for the new PE to become familiar enough with the situation to sign off on any documents. The CEO needs to choose between backing down and trying to get Ted back, or accepting a substantial delay before the documents in question can have a PE signature.

Answer 2

You're pressed for time, so you use the assets that you have. Refusing to sign off on the part of the other engineer without reasonable explanation and timeframes for doing so is grounds for a PIP.

Put this in place ASAP and wake the engineer up. You risk him/her leaving, but if they're not doing the work that isn't a loss. The longer you leave it the more time the person has to job hunt. Put the pressure on.

Review the contract of the engineer who walked out and take whatever action you can. Do it now, you should have done it on day one. Hesitation to discipline is a sign of weakness and a weak startup fails before it get's going.

Meanwhile network and see if you can find a consultant who could come in and sign off on things at short notice.