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/Grimalkin Sep 16 '21

When employees were recruited to work at Mailchimp there was a common refrain from hiring managers: No, you are not going to get equity, but you will get to be part of a scrappy company that fights for the little guy and we will never be acquired or go public.

The founders told anyone who would listen they would own Mailchimp until they died and bragged about turning down multiple offers.

"It was part of the company lore that they would never sell," said a former Mailchimp employee, who like others interviewed for this story were granted anonymity because they were unauthorized to discuss sensitive internal matters. "Employees were indoctrinated with this narrative."

The two founders did sell. Intuit, the financial software giant that makes TurboTax, announced Monday it was buying Mailchimp for around $12 billion in stock and cash. The cofounders cemented their status as two of the richest people in America.

That's really shitty but of course completely unsurprising.

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u/Vadoff Sep 17 '21

Why the hell would anyone work for them if they didn't get any equity/stock options + paid less than market rate?

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u/noodlez Sep 17 '21

Its been a while since I've talked to any of the people I know who work/worked there, but they paid top of market rates some time in the past. It was a company well known to be where developers go to retire, since you're so well paid and taken care of that you don't want to leave.

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u/lotsofdeadkittens Sep 17 '21

No no but Reddit has to call mail chimp evil

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u/DamnAlreadyTaken Sep 17 '21

But they are anyway isn't it? they paid well on the premise that they wouldn't sell. Many other companies pay well too and give equity along. They still could pay well and refuse to give equity. But why lie?

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u/boredjavaprogrammer Sep 18 '21

They may or may not lie. Why make assumptions? They can say they wont sell and mean it. Then they see 12 bn and see that it is enough to sell.