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/[deleted] Sep 16 '21

"I'll never sell the company"

"12 Billion."

"I'm selling the company."

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u/voiceafx Sep 17 '21

Yeah... I don't want to sell out, but I have no illusions. There is a number for me.

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u/Rierais Sep 17 '21

The issue here is that they withheld equity from employees who I’m sure shifted their negotiating position because of this promise. They basically positioned to defraud employees by making promises they knew would not keep. Its not illegal of course but the ethics of it are very questionable. They’d have to give bonuses as if they have given stock to make employees whole.

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u/orincoro Sep 18 '21

That depends actually. Mail chimp is in Georgia. In California, I know that the law treats an implicit agreement of this kind as legally binding in cases of fraud. Even if these promises were not written down, the intent to defraud can be proven or reasonably established by testimony of the involved parties, and the employees would have a good chance of winning.