4 ms·
I wonder how long she will be able to hold the CEO position?
by dcgudeman 10y ago
I wonder how long she will be able to hold the CEO position?
- fnbr 10y agoOn the one hand, hopefully not long, as she can't provide any effective leadership with this in place. However, my understanding is that Theranos has an unusual corporate structure that gives Holmes control of most of the votes, so if she doesn't want to leave, I don't know if anyone can force her.
- dcgudeman 10y agoSeems like an odd arrangement for investors to agree to, one I am sure they are currently regretting...
- fnbr 10y agoYup. I'm pretty bearish on tricky corporate structure. I think a lot of the existing norms evolved for a reason, and exist to prevent people pulling these sorts of shenanigans. Board oversight isn't always a bad thing.
- dekhn 10y agoMs Holmes is a close personal family friend of Venture Capitalist Tim Draper, who continues to support her and say that everybody else in the world is a big meanie who is out to get her. He hasn't repented and I don't expect him to.
- rgbrenner 10y agowell the bar is "owning, operating, or directing" a lab. She can appeal and that would delay it.. but when this takes effect, it sounds like she's out.
- dcgudeman 10y agoBut does "operating a lab" mean the same thing as being the CEO of Theranos?
- iaw 10y agoYes.
- jacquesm 10y agoDitto 'owning'. Effectively this says 'Theranos as a company will not go anywhere until Holmes steps down, and after that the chances of it remaining in business are still extremely slim'.
- dragonwriter 10y agoSince "owning" and "directing" are there, and Holmes is not only CEO but also majority shareholder (and owning stock that gives her disproportionate control for her stock ownership), wouldn't she have to not only step down but also divest at least enough to no longer be either majority owner or have majority voting power?