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As a company trying to donate their leftover cash to charity, what's the benefit of being public? Won't being beholden to shareholders mean wanting to increase
by MAGZine 6y ago
As a company trying to donate their leftover cash to charity, what's the benefit of being public? Won't being beholden to shareholders mean wanting to increase shareholder value vs upholding their commitment to charity?
- bradlys 6y agoWhere does it state they're giving all "leftover" cash to charity? I guess it says it at the beginning but it sounds like marketing speak. What is even "leftover" anyway? > Our 2019 annual Giveback for the 12 month period ended June 30, 2019 amounted to about 1.5% of earned premiums. They take 25% on all premium to begin with. From what I know - standard in the industry is somewhere between 20-25% cut. So, for them to take effectively 23.5% isn't weird at all. If they go public - their employees can cash out. There's no way anyone at Lemonade will stay unless that stock everyone is earning gets paid out.