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If you give a majority share to a VC, or they have more board seats... you should expect to move down from CEO to another position, if you don't perform. Why i
by rjurney 17y ago
If you give a majority share to a VC, or they have more board seats... you should expect to move down from CEO to another position, if you don't perform.
Why is that a bad thing? If you don't like it - don't take the money. If you take the money - expect to step down if you can't hack it.
- lowkey 17y agoI believe the point the author was making is that it is standard practice to replace the CEO and founding management team regardless of performance. They just prefer to have their buddies at thee helm. In other words it has more to do with cronyism than business results.
- rjurney 17y agoI don't buy it. Why would a VC want to replace a founder that is kicking ass? If you don't make your numbers, expect to be canned. You work for the board at that point. Better yet, if you don't make your numbers - step down.
- fatdog789 17y agoActually, the board members have a fiduciary duty to the shareholders to maximize corporate performance. If the CEO isn't cutting it, it doesn't matter who he is, he should be fired.