5 comments

[ 4.1 ms ] story [ 23.2 ms ] thread
Preferred shares really do suck.
It seems that maybe startup employees end up carrying a lot of risk because they aren't really involved in deal-making between management and investors.

Aren't there crazy terms (vested share repurchase rights or other arrangements that could be described as "vampire capitalism") that work in the interest of management and investors while working against the interest of employees?

I guess I'm wondering: does anybody think seriously about labor unions anymore? Would employees be better off as part of one?

To put it another way: how do you as an employee make sure that your "equity" (including, say, unvested options) is protected? Is it enough for employees to vote with their feet? (Doesn't that usually mean losing their "equity" if they do so?) Or would collective bargaining be a good way to protect employee interests?

What should we learn from this?:

http://techcrunch.com/2011/06/26/skypes-worthless-employee-s...

> To put it another way: how do you as an employee make sure that your "equity" (including, say, unvested options) is protected?

AFAIK, there's nothing employees can do to prevent e.g., the company taking on financing with unfavorable liquidation preferences -- besides I guess... quit.

> And Facebook paid $1 billion for Instagram, mainly to hire its 13 employees

I don't think instagram was an acquihire..

> Only 19% of tech employees said they were happy in their jobs and only 17% said they felt valued in their work.

This seems low beyond reason. I would have expected more like half (at least).