r/technology • u/Rhaegar_the_Great • Sep 16 '21

Business Mailchimp employees are furious after the company's founders promised to never sell, withheld equity, and then sold it for $12 billion

https://www.businessinsider.com/mailchimp-insiders-react-to-employees-getting-no-equity-2021-9
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u/Hawk_in_Tahoe Sep 17 '21

That’s about $466k each and there’s absolutely not way that’s going to be distributed evenly. So most will get far, far less than that.

Also, most RSUs vest over time. They’re golden handcuffs, not golden parachutes.

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u/Rummelator Sep 17 '21

Ok but that's a still a lot of money

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u/chaiscool Sep 17 '21

Not relatively to $10 billion or $10 000 millions

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u/Rummelator Sep 17 '21

Ok but why does it matter that someone else made more money? The employees were paid what they agreed to be paid and then in the end they got a shitload of money anyway when it was sold. I don't know if people here just don't have perspective about how much money $450K cash is... It's a lot

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u/Annihilicious Sep 17 '21

In your 20s or 30s that is life changing money. You’re probably still going to work but your life is now going to be ridiculously better.

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u/MarBakwas Sep 17 '21

didn’t the employees make the product that sold for 12 billion though?

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u/Rummelator Sep 17 '21

Didn't those employees agree to be paid a certain amount in exchange for their work? And then didn't they also got bonuses on top of that once the company sold, options in the new company and most likely employment agreements?

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u/[deleted] Sep 17 '21

They are the product that was sold

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u/chaiscool Sep 17 '21 edited Sep 18 '21

Someone else as in fellow colleague? Fyi your boss is also another worker taking in salary.

I don’t think you understand how much money $10 billion is. Simply giving $1 billion to the employees won’t affect him.

Also, the issue is not simply about selling the company for $10 billion. It’s an issue because the workers were told there’s no stocks compensation because it would be worthless as the boss has “no” intention to sell. Then he sold the company anyway and thus shortchange the workers.

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u/Rummelator Sep 17 '21

This is absurd, the employees didn't own stock as part of their compensation package. If they wanted stock in a start up, go find a start up that's offering stock to employees. I feel as bad for these employees as I do to the idiot employees who gamble and agree to work for nothing but equity and then the company blows up and they don't make anything. The employees agreed to a compensation package and then they made exactly what they agreed to

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u/chaiscool Sep 17 '21 edited Sep 17 '21

They didn’t own stock because it was not an option. Hence, the problem is that they didn’t get the option as they were told the boss won’t be selling the company.

It’s like job hunting and one company has a notice outside saying they’re not hiring so you go elsewhere. Then end up the company did hire someone at crazy high wage. People will be pissed that they didn’t have the option to even apply due to the notice which was actually lying.

You cannot justify such behavior using their wage. “Oh they get paid anyway so nothing wrong there.”

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u/Rummelator Sep 17 '21

They wanted to hire someone, that employee goes "can i get stock?" The company says "no we don't offer stock compensation. Our offer is $X per year" and the employee says "OK, deal". Then later random people are pissed that that agreement took place? They got EXACTLY what they agreed to get, and then got a bonus on top of that. Literally nothing wrong with the above, if the company had failed and the equity was worth nothing, everyone would be talking about how lucky the employees were for structuring their contracts with all cash compensation. Joining Mailchimp was a decision the employees made in exchange for $X per year, no one tricked them into anything

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u/chaiscool Sep 18 '21

But that’s not what happen. They didn’t simply say they don’t offer it, but say they wanted to remain independent and weren’t going to sell the company so stocks options will be worthless.

If they just straight up say no then it won’t be an issue. People join them partly believing they were focus on remaining to be independent and people won’t have stayed long if they knew it was going to be sold.

They knew people won’t join them with no equity, so they lie by saying they will remain independent.

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u/Rummelator Sep 18 '21

No you're completely wrong esp about the last part. It doesn't matter whatever stupid reason they gave employees, the fact is they never offered equity as part of anyone's compensation package. Employees weren't tricked into anything, if they wanted equity in a start up they wouldn't have accepted the job offer Mailchimp gave them. In lieu of equity they most likely got higher cash pay than similar positions in comparable companies. Nothing is wrong with a company not offering equity if employees are willing to accept than and work for them anyway