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There's a lot more here, including responses from the founders: https://twitter.com/Suhail https://twitter.com/Suhail Seems the founding CEO spent 10 years the
by gkoberger 8y ago
There's a lot more here, including responses from the founders: https://twitter.com/Suhail https://twitter.com/Suhail
Seems the founding CEO spent 10 years there and got nothing, but a new CEO of 6 months walked away with $11MM.
- TAForObvReasons 8y agoLikely the new CEO was brought on specifically to engineer a sale. The new CEO arguably brought value to investors if the old CEO wasn't willing to sell and there was significant concern that there would be no residual value. Such is life.
- barbegal 8y agoThe new CEO had previously been CFO since 2014. If his actions turned an unsalable company into a company that could be sold for $465 million then I'd say he's probably worth the $11 million. And the founding CEO surely drew a reasonable salary despite the company making a loss.
- gkoberger 8y agoYeah, to be clear, I'm not saying anyone did anything wrong.
- bsder 8y agoPossibly, but how many more of these deals will it take until the employee pool goes away permanently? If you have the skills to be good at a startup, you can go to one of the big boys for a lot of cash.
- Eridrus 8y agoI think this says more about top end compensation, rather than startup compensation. The effect is going to be top end employees not really being early employees at startups, but that's not necessarily bad.
- inthewoods 8y agoWe don't know, as far as I can tell, if the prior CEO took money off the table during prior funding rounds. So he might have made some money. Happy to be corrected if someone is in the know or has a reference, but it's pretty common on large fund raising rounds.