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On the practical side breaking the law doesn't always work though. Shareholders are owners, and regardless of how they got their shares (vesting, purchase, gift
by tedivm 6y ago
On the practical side breaking the law doesn't always work though. Shareholders are owners, and regardless of how they got their shares (vesting, purchase, gift, poker game) there are rights that go along with that.
- bpodgursky 6y agoSure, the right to get paid out the same as all other common shareholders. But will the company structure an acquisition so more of the payout is golden handcuffs than equity payout, if it's better for retention? Well, yes.
- toomuchtodo 6y agoWill some shareholders sue? Probably. Will they recover any additional value? Maybe! Have to see how it plays out in court if a settlement doesn't occur first.
- yibg 6y agoFollowing this logic, all acquisition should have 0 cash, with what would've been the money for the acquisition going to retention bonuses instead. This is definitely better for retention, and the share holders that aren't working there anymore? Well they aren't working there anymore so have nothing more to contribute right?