Comment by tsimionescu
1 day ago
> Supposing there was an SV startup that was relatively generous with equity compensation, so over 50% of equity is owned by non-C-level employees. What would you expect to change, if anything, if that threshold was passed?
If the workers are majority owners, then they can, for example, fire a CEO that is leading the company in the wrong direction, or trying to cut their salaries, or anything like that.
>If the workers are majority owners, then they can, for example, fire a CEO that is leading the company in the wrong direction, or trying to cut their salaries, or anything like that.
Why wouldn't the board fire said CEO?
The most common reason to cut salaries is if the company is in dire financial straits regardless. Co-ops are more likely to cut salary and less likely to do layoffs.