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Often times the person shown the door leaves with far more equity than they should. That's unfortunately the last concern the board has. And if it's early eno
by davidu 16y ago
Often times the person shown the door leaves with far more equity than they should. That's unfortunately the last concern the board has.
And if it's early enough in the process, the board, if required for the success of the company, can recapitalize the entire structure of the company and wash out any previous employees. You have to be careful not to single out any individual when you do this, but if you do it and have good reason, it can solve these issues too.
Anyways, people are not forced out because they own too much, they are forced out because they become an immovable impediment to success.
Jack Dorsey at Twitter is a good example. And he got more equity when he quit. And he quit in a nice fashion, allowing the company to start fixing their issues and scale much faster with more experienced leadership.