4 ms·
Often, founders get paid money directly as part of the acquisition to make them greenlight it.
by ummonk 7y ago
Often, founders get paid money directly as part of the acquisition to make them greenlight it.
- tptacek 7y agoHow often is often? Can you name 3 such cases?
- fiter 7y agoOften enough that it is mentioned in the article.
- tptacek 7y agoCarve-outs in general are mentioned in the article. A common type of carve-out: the employee retention pool. The article does not say that founder carve-outs are common. I'm sure they've happened, but you said they happen "often", as a way to get founders to greenlight deals. Do you know how often that happens?
- fiter 7y agoI don't know how often that happens, so I can't add anything to that part of the discussion. I can only reason that it depends on whether the founder still has voting control of the company, but that's implied with "greenlighting". WeWork is a similar situation where the founder is effectively getting a carve-out to greenlight the deal. That's only one example, though.