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Capitalism isn't necessarily a good thing, it's just better than any other economic system.
Indoctrinated fool. Go read some past and present economic theory.
WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
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Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#22[flagged]
Because in this case, the "victims" were voluntarily involved. Also, the peanut gallery is free to throw peanuts at the stage.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#23Yet any early employees who signed on with compensation in the form of stock grants/options/RSUs have lost out on years of compensation. Claiming that it's a risk/reward tradeoff is nonsense, as ICs don't have any meaningful say on the path to exercising their "income", and there are huge incentives for founders and VCs to arrange deals like this. I really hope that people start realizing that this is a core behavior…
there are also a lot of stories of early wework employees who were essentially told "we will give you options soon in the future, but sign your employment contracts now and trust that we'll get it done" and then didn't get it done. Really shady all around.
Oh yeah, I would always mandate that be a $ value in the contract.
Edit: to clarify I mean “$x of shares”
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#24Since when did loss making pre-IPO companies become "TOO BIG TO FAIL" ?
That's really the goal of modern business, isn't it? Pump a business full of cash and grow at massively unsustainable rates. If your company collapses then you take down a bunch of other businesses and industries which relies on the investor-subsidized stuff you bring to the market, making your company too big to fail.
With the sheer amount of venture capital at your beck and call, you can also force out challengers trying to enter the market easily by dropping prices even further (and who cares, you're already non-profitable!) or just straight up buying them out.
Profitability doesn't even matter as long as your business is considered valuable! Even better if you can get tax payers on the hook for saving your asses.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#25I have to ask when are the investors in softbank or the vision fund going to question this bail out? I’d be furious if it were my money being flushed down the toilet this way.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#26As Matt Levine said, if you owe the bank a million dollars, you have a problem. If you owe the bank 100 million dollars, the bank has a problem.
I don't know who said that first but it certainly wasn't Matt Levine.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#27Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#28There is another less discussed downside to Vision Fund’s reckless spending and overvaluation of startups.
While Travis & Adam make their billions, the employees at Uber and WeWork are granted overvalued options and stock that subsequently crashes.
The Uber stock is still below where it was 5 years ago and may never recover. The WeWork stock will likely never recover.
As an employee, I would avoid working for a company that is taking funny money from VF. Its a big warning sign to see a company raise from VF given what has come to light.
Re: WeWork Needed a Bailout, But Adam Neumann Still Leaves a Billionaire
#29I have to ask when are the investors in softbank or the vision fund going to question this bail out? I’d be furious if it were my money being flushed down the toilet this way.
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