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So you don’t get sued, but you lose control or even your stake or even the whole business. Remember how Uber founder got kicked out? He had a strong hand. Chi
by DenisM 1y ago
So you don’t get sued, but you lose control or even your stake or even the whole business. Remember how Uber founder got kicked out? He had a strong hand.
Chilling effect is there one way or another, and even when that does not work adverse selection does.
You have to have a very strong market position to resist the investor pressure. Kinda like Google had twenty years ago.
Or you can have a diverse set of investors who can’t or won’t be swayed by activist investors. But that usually means being public at which point your employees are incentivized by RSUs.
- sorcerer-mar 1y agoI'm not arguing there isn't an incentive problem. I'm arguing that it doesn't have any basis in statute. The distinction is important because it points to a different solution and different moral culpability for the system's outcomes.