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You think that a board seat (the group that the CEO reports to) is a consolation prize? That makes no sense at all.
by amirmc 9y ago
You think that a board seat (the group that the CEO reports to) is a consolation prize? That makes no sense at all.
- goseeastarwar 9y agoIt makes all the sense in the world when you realize how board's actually work.
- AlexB138 9y agoCan you expand on that? I'm not familiar enough with how boards operate to understand what you mean.
- goseeastarwar 9y agoFounders agree to all sorts of nefarious stuff they think will never be triggered to get to a signed term sheet. Investors will exercise this power when the incentives are misaligned with the founders (aka the company isn't doing well).
- amirmc 9y agoYou've still not said anything about 'how boards work'.
- goseeastarwar 9y agoThe kinds of things I'm referring to is almost always around relinquishing power to the investors on the board. Founders end up with very little control even if they have board seats.