3 ms·
> I don't even see what the issue is here... He's supposed to just give this away to the workers? I think the issue (poorly put in the article) is that the fou
by helsinkiandrew 4y ago
> I don't even see what the issue is here... He's supposed to just give this away to the workers?
I think the issue (poorly put in the article) is that the founders shares he has still gave him control, whilst the company was ‘owned’ by others, forcing them to do a secret deal giving him better returns than other shareholders.
Surely the workers and board should be loyal to the current shareholders and investors rather than the guy who started and ran the company previously (however successfully)
- smallnamespace 4y ago> board should be loyal to the shareholders In what sense? Having voting control means he gets to pick the (majority of) the board.
- helsinkiandrew 4y agoTechnically the board is responsible for all shareholders but his extra voting rights means he can force it to give him preferential treatment. The reason the deal was secret is probably to try to stop any shareholder lawsuits. > The board has a fiduciary duty with respect to the shareholders; that is, the board has financial and other responsibilities to keep the corporation running efficiently so the shareholders don't lose money." https://www.cfainstitute.org/en/advocacy/issues/board-responsibilities https://www.cfainstitute.org/en/advocacy/issues/board-respon...