4 ms·
What happens to founder equity in high-profile cases like this? If he's given up his position at the company as well as on the board, did he keep much of his eq
by CGamesPlay 11y ago
What happens to founder equity in high-profile cases like this? If he's given up his position at the company as well as on the board, did he keep much of his equity? This has to be a difficult time for Parker.
- vasilipupkin 11y agoThey keep it. He is a shareholder like any other.
- vasilipupkin 11y agoto the downvoters: is the deposed CEO not a common shareholder like any other common shareholder?
- 100k 11y agoFounders are subject to vesting like other employees. Sometimes VCs will require a new vesting period when investing. I suspect he lost any unvested shares.
- deepinsand 11y agoMost VCs will mandate founder equity to vest over 4 years. They must be actively employed for it to vest, so since he's stepping down and resigning from the board, I guess he'll lose what he hasn't vested.
- kenbaylor 11y agoEither one of two things: a) like normal employees now, VCs insist founders vest over 4 years, so what he has vested he keeps, or b) the board says he was fired 'for cause' and can claw back ALL his equity (many but not all contracts have such provisions)
- tedmiston 11y agoHe does not necessarily keep even vested equity. He most likely loses unvested equity. I have no idea about the termination clause for his contract, but it is a definite possibility to lose it all.
- forgetsusername 11y agoThe tone around here is absolutely shocking. It's looking like at least some of the success of this company involved breaking the law. And we are worried about whether the CEO will be wealthy enough after being canned? Why are we not calling for heads?