Re:Zenefits Loses Over Half of Its Value
by Retric on Friday July 01, 2016 @11:08AM
(#12016666)
You can find stations that break down like this:
CEO and CXX of company A is on company B's board.
CEO and CXX of company B is on company C's board.
CEO and CXX of company C is on company A's board.
Now, no direct conflict of interest, but you can see the issue. Especially when CEO of company A also sit's on company A's board.
So, yea on it's own the co-founders on the board is not a big thing. But, looking into the board should be part of due diligence.
PS: You can also see issues when VC's make up the majority of the board, but that's less common with public companies. (Let's buy up little company X that my firm invested in.)
So, yea on it's own the co-founders on the board is not a big thing. But, looking into the board should be part of due diligence.
PS: You can also see issues when VC's make up the majority of the board, but that's less common with public companies. (Let's buy up little company X that my firm invested in.)