I'm not so sure. A rational person might do as you predict, but from the OP's description, this guy is heavily emotionally invested in the band, as well as at least moderately irrational. Also, it doesn't sound like the band has the funding to offer this guy a sum that is too good to refuse. This guy may well be of the mind set that he'd rather see "his" band go up in flames rather than be paid a few hundred to have it carry on and potentially be successful without him. A Phyricc victory, so to speak.
Yes, the guy may be desparate for cash and so willing to take even a token sum. But don't discount that the guy is such a d-bag that he'd be willing to give up some short term gain rather than permanently relinquishing what he probably sees as his partial intellectual property.
I'm not saying it isn't worth a shot, I just think it isn't certain he'll buy into it.
Nail on the head, right there. We've had incidences in the past where at first he seemed "on the same page" (ie, our radio gig as a trio) and then flipped out over it a few days later.
One thing I feel I should clarify is my reference to the band as "his" in the OP. I meant that more metaphorically, as in "I was the new guy, and not ready to exert control over the guy who brought me into the band". He was never a driving creative force behind the band, though his enthusiasm was certainly beneficial to the band's promotion. That is no longer the case.
Another thing I want to clarify is that I'm not looking to dick him over. I'm not looking to take away from the contributions he's already made, and if he's entitled to a share of these first two albums (plus another unreleased album that may or may not ever see the light of day), I want him to have that share. While I appreciate the suggestions that we just drop his tracks from this album, that might have been a viable option at the START of the mixing process, but that isn't really the case at this juncture. Being more of a 'concept album' it's not really a matter of "replacing a guitar part", and after the 10s/100s of hours I spent truly making "his" parts work, they're as much a testament to our engineering talent as anything else. In any case, the album we've pre-sold is the album with him on it, so I don't feel it would be fair (to him nor to our supporters) to change that now.
We've run the band to this point as a sort of 'majority rules' democracy, voting on any major decisions. The drummer has yielded his vote to anything that the other guitarist and I are in agreement on, since he and I have worked side by side about 20 hours a week on this album and some of our future products. Through email we've all established that we want him to get exactly what he deserves: no more, no less.
1) He deserves to be fired. Every band member is in agreement.
2) He deserves to be compensated for the contributions he's made. Every band member is in agreement.
It seems the consensus on this board is that we should try to cut him out of any future stake in the first 2 albums (to which he contributed), am I perceiving this correctly? Is that
hands down preferable than including him in any residual income we might generate off of those albums (assuming there is any)? Why is that the case? If one of our future projects (to which he will have no investment) causes us to sell out or reprint one of these earlier projects I'm fully willing to share that revenue with him, am I wrong for that?
The way we handled the first album after all the debts were paid was by simply dividing the remaining physical copies between the four of us (the previous bass player graciously conceded his stake in the band and that album to me), as everyone had a more or less equal investment at that point since the album was paid for strictly from gig revenues. Might it be fair to simply "pay him off" with a huge stack of CDs (presuming he would go for it) proportionate to his investment in this project? What would be some of the downsides to that?
I really appreciate all of the input I've received here, and will be printing it out and going over it with a highlighter to bring to our meeting on Friday. cheers!