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I'm with it until "I sell 5 percent of the company to investors for $100 million and spend it on yachts." Aren't investors going to notice that during the bank
by imgabe 8y ago
I'm with it until "I sell 5 percent of the company to investors for $100 million and spend it on yachts."
Aren't investors going to notice that during the bankruptcy proceedings, the $100 million is nowhere represented among any assets of the company and the founder suddenly has 10 yachts? That wouldn't raise any red flags? Wouldn't you have to produce some sort of accounting records showing where the money was spent on salaries, office space, Facebook ads, etc?
I know there's a ridiculous amount of money sloshing around Silicon Valley, but I still find it hard to believe that $100 million is going to disappear and nobody is going to bother asking about where it went.
- 4ndr3vv 8y agos/yachts/salaries They're not _actually_ advocating buying company yachts. But a CEO salary? Sure. You can buy your yachts with that.
- imgabe 8y agoSure, but nobody is going to be suspicious that you paid yourself $10 million/year while the company was losing money?
- baddox 8y agoI’m sure they’ll be furious, and your punishment will be a $200m severance.
- fenwick67 8y agoHow much was Bezos making while Amazon was in the red? Or Jack Dorsey?
- imgabe 8y agoAmazon and Twitter eventually went public and made their investors umpteen billions of dollars, so I'm sure they don't care now. If they had gone bankrupt instead, and Amazon was nothing but a static HTML page while Bezos was building his own marina I imagine someone would have been asking some questions.
- Kye 8y agoThey're all looking for the same windfall. Nobody wants to rock the boat.