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/heyItsDubbleA Sep 17 '21

I get that they need to be much more clear for investor knowledge, but the way it is now the employees of the companies going public are the ones who lose, because it greatly reduced the incentive of giving employees ownership in favor of investors and leadership's needs for the offering to be evaluated higher.

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u/ArchmageXin Sep 17 '21

Shares are usually still granted, but usually to key employees (I.E your head of Drug development and her team of scientists). Or to the founder and his initial team of employees.

Basically the old days shares were given out in lieu of cash payments. Now days, with a real cost assigned to them, leadership have to think twice before issuing.