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Jobs wiped out the original Pixar engineers' stock options by selling the company, "Old Pixar", to "New Pixar", which he had created specifically for this purpo

Jobs wiped out the original Pixar engineers' stock options by selling the company, "Old Pixar", to "New Pixar", which he had created specifically for this purpose. It was a mere formality to him as he was the controlling shareholder in Old Pixar, just signing some papers. "As part of the reorganization, Jobs exercised a clause in the employee stock option agreements that allowed him to buy back their options at the original strike price, which was a pittance." * [Charles Ferguson, High Stakes, No Prisoners pp 98-99]

newnewpdro 7y ago
Was anything mentioned about stock grants in "New Pixar" to the wronged employees? I presume something must have been done to right the wrong at least with the important people, otherwise they would just walk out at that point.
- diamonis 7y ago
  Ferguson writes, "During the public offering, the underwriters forced Jobs to distribute about 15 percent of the stock among key employees, because nobody would have invested otherwise...but many were shut out entirely, including some who had spent many years creating the technology."
scarface74 7y ago
https://www.cfo.com/people/2016/10/ex-cfo-tells-fascinating-story-pixar/ https://www.cfo.com/people/2016/10/ex-cfo-tells-fascinating-... Despite long-promised stock options that Levy had earlier persuaded a reluctant Jobs to finally grant to Pixar employees, Jobs had retained enough shares that he was now a billionaire.
MobileVet 7y ago
It wasnt Pixar, but this exact thing happened to me as well. Founder blew tons of cash and needed to raise more so he cleared out the debt with 'new co'. Apparently his money was worth more to him than my 4 years of service. https://news.ycombinator.com/item?id=19624164 https://news.ycombinator.com/item?id=19624164
thephyber 7y ago
I'm curious if abuses like this would sink the company if they went viral (eg. no animator/programmer would want to work for the company or would demand much higher cash compensation) or if it would be a non-issue like Equifax (who didn't seem to lose significant business, despite taking a massive post-data breach reputation hit). I'm curious if more information transparency change the employment market.

newnewpdro 7y ago

Was anything mentioned about stock grants in "New Pixar" to the wronged employees? I presume something must have been done to right the wrong at least with the important people, otherwise they would just walk out at that point.

diamonis 7y ago
Ferguson writes, "During the public offering, the underwriters forced Jobs to distribute about 15 percent of the stock among key employees, because nobody would have invested otherwise...but many were shut out entirely, including some who had spent many years creating the technology."

scarface74 7y ago

https://www.cfo.com/people/2016/10/ex-cfo-tells-fascinating-story-pixar/ https://www.cfo.com/people/2016/10/ex-cfo-tells-fascinating-... Despite long-promised stock options that Levy had earlier persuaded a reluctant Jobs to finally grant to Pixar employees, Jobs had retained enough shares that he was now a billionaire.

MobileVet 7y ago

It wasnt Pixar, but this exact thing happened to me as well. Founder blew tons of cash and needed to raise more so he cleared out the debt with 'new co'. Apparently his money was worth more to him than my 4 years of service. https://news.ycombinator.com/item?id=19624164 https://news.ycombinator.com/item?id=19624164

thephyber 7y ago

I'm curious if abuses like this would sink the company if they went viral (eg. no animator/programmer would want to work for the company or would demand much higher cash compensation) or if it would be a non-issue like Equifax (who didn't seem to lose significant business, despite taking a massive post-data breach reputation hit). I'm curious if more information transparency change the employment market.