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Exactly. Going public is like leaving your baby to be raised by wolves.
by nish__ 11mo ago
Exactly. Going public is like leaving your baby to be raised by wolves.
- londons_explore 11mo agoIf you IPO but the founders still have more than half the voting rights, you can fully ignore the public in all your decision making and there is nothing the other shareholders can do.
- consp 11mo agoCan't they sue you out of control? Fiduciary duty and all?
- londons_explore 11mo agoIf you employed your cousin on a huge wage, probably yes. But if you're just running the company 'badly' (in the shareholders eyes), probably no.
- triceratops 11mo agoFiduciary duty means "put the shareholders' interests above yours". Not "make the shareholders more and more money no matter what".
- triceratops 11mo agoOnly kind of. The most obvious examples are big tech companies such as Meta or Alphabet. But they pay their employees in RSUs. If the stock price falls employees make less money and can be lured away.