after a colleague of mine left the company, I'd like to provide him/er with an equity for the work done. I'd like this equity to be dynamic, meaning that whenever a new member or investor enters, his/er equity rescales proportionally.
As an example:
Initial Equity of "Person A": 5% New investor enters and takes: 20% Final Equity of "Person A": 4%
Is it possible?
P.S. To be more clear, my doubt is that there may be some options in the business sector to get a fixed-equity over time (independently on diluition): for example, in case an investor enters, s/he may say: "I want 20% forever". Is this option real, or am I wrong? So, my question is whether I have to make clear this rescaling condition or it is just a default behaviour.