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Bad investors and a dysfunctional board can destroy a company. When late-stage investors push to fire the CEO, they often do so to install a puppet CEO who will
by patrickhogan1 2y ago
Bad investors and a dysfunctional board can destroy a company. When late-stage investors push to fire the CEO, they often do so to install a puppet CEO who will give them greater control over the board. This allows them to prioritize financial decisions that serve their own interests, often at the expense of other shareholders, such as early employees, whom they disregard.
- benatkin 2y agoThis in the response made me cringe a little: > I wanted to continue with what was working and with what our partners had signed on to distribute. How does he know it was working? He says it so matter of factly. And that’s what this big-mad comes down to.
- IAmGraydon 2y agoHow does he know? He was the CEO. I'm guessing that he had access to the company's metrics.
- benatkin 2y agoMetrics alone don't tell you if a strategy is working in the long term. It was no doubt a highly informed opinion, but still an opinion.
- patrickhogan1 2y agoYou make a fair point. I would have liked him to elaborate more on the potential acquisition that was declined. However, he mentioned they just raised $60 million. If his approach wasn’t working, why would anyone invest that amount? And if the plan was to fire him, given that his vote was required, wouldn’t it have been more transparent to say upfront: “If you reject the acquisition and opt for this $60 million investment instead, we’re going to fire you”?