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Startup CEOs who gave up fortunes to turn employees into millionaires

businessinsider.com

121–130 of 142 posts

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#121

Ask HN: So, I'm the sole founder here with investor. The dude's awesome, but the contract we signed puts me in significant financial risk if the company doesn't turn up profitable. I have more than several employees (some of them will probably read this) who I pay regular and competitive money though I'm not particulary pleased with their output (but hey, it's improving, and there's not much of a talent pool here). M…

Firstly if you're at personal risk if you don't turn up profitable, you need to be incorporated. That immediately shifts all the financial and legal risks off your shoulders if you're operating above board.

Employers do take all the company's risk, however my boss (small construction company) gets to walk away with millions in savings with no personal liability. I get unemployment benefits. He gets to retire to a million dollar house, I risk losing mine.

You need to dislodge your head from your ass if you think you're the only person taking risk.

You need to realize that people are these things called humanbeings they have their own lives, their own motivations, problems and stresses. A great manager does this thing called managing where they use their knowledge of their employees to keep them motivated, something you quite clearly are not doing.

You employees sound unmotivated because you've got the attitude your company is already going to fail. FYI people can tell when a company is circling the drain and will half arse it and ride it out until the first paycheques bounce.

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#122

The article says: > There’s a startup in New York everyone talks about, and the things they say aren't very nice. The startup sold for ~ $80 million and the founders got rich. But, as the rumors go, no other employee made more than $50,000. Does anyone know which startup they are referring to? carrentals.com? something else?

'Everyone' isn't talking about this issue, so everyone's guess is just a guess.

That said, Invite Media was acquired by Google for $81MM a couple years back.

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#123

Earlier quoted context omitted.

I agree with timr here. You guys are missing the point. It's not math. It's trust. There's no way to predict the outcomes. Options are little more than signals of intention. At point of exit, everything is in the air and you are not part of the negotiation. What's it worth? Do you have to move? Do you report the Chief VP of Total and Complete Meanness? You get paid because someone is looking out for you. The way to e…

Hey, do you want to join a cool startup that I'm working on? I'll look out for you, no worries. Just work and have fun, and I'll take care of the rest. By the way, there's also an investment opportunity, you see I've recently came into ownership of a certain bridge....

> I've recently came into ownership of a certain bridge

Sorry, I'm saving my money for this sweet deal that's coming up on the Eiffel tower.

http://www.smithsonianmag.com/history/the-smoothest-con-man-...

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#124

Ask HN: So, I'm the sole founder here with investor. The dude's awesome, but the contract we signed puts me in significant financial risk if the company doesn't turn up profitable. I have more than several employees (some of them will probably read this) who I pay regular and competitive money though I'm not particulary pleased with their output (but hey, it's improving, and there's not much of a talent pool here). M…

Perhaps you are just not beating your employees hard enough?

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#125

Ask HN: So, I'm the sole founder here with investor. The dude's awesome, but the contract we signed puts me in significant financial risk if the company doesn't turn up profitable. I have more than several employees (some of them will probably read this) who I pay regular and competitive money though I'm not particulary pleased with their output (but hey, it's improving, and there's not much of a talent pool here). M…

Perhaps you are just not beating your employees hard enough?

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#127

Ask HN: So, I'm the sole founder here with investor. The dude's awesome, but the contract we signed puts me in significant financial risk if the company doesn't turn up profitable. I have more than several employees (some of them will probably read this) who I pay regular and competitive money though I'm not particulary pleased with their output (but hey, it's improving, and there's not much of a talent pool here). M…

Perhaps you are just not beating your employees hard enough?

the beatings will continue until morale improves

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#128

Beyond a certain amount of money (I'll throw out a number and say, $10M), the incremental gain is not much. The change in your lifestyle in going from $0M to $5M is huge; but from $10M to $15M? Not much. So these CEOs are doing the smart thing (in addition to the nice thing). They know that when they get the inevitable itch to do the next startup, they can count on a stellar reputation and recruit some great talent.

I think a game changer cash position for most people is 2.5MM liquid -- not tied up in real estate. 5MM means you're flying business/first with your family anytime/anywhere. You may have a pied a terre somewhere. 10MM means you're angel investing, vacationing, and not generally "working" anymore. 15M++ means you bank with The Private Bank of Wells Fargo, have a ridiculous line of credit // no checking account, multip…

$5M doesn't go that far anymore. If you're young and you have $5M, you could take 4-5% per year and make it last 40-50 years.

That's only $250,000 per year, pre tax. Good money, but certainly not enough to not have to think about money anymore.

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#129
post #128

Earlier quoted context omitted.

I think a game changer cash position for most people is 2.5MM liquid -- not tied up in real estate. 5MM means you're flying business/first with your family anytime/anywhere. You may have a pied a terre somewhere. 10MM means you're angel investing, vacationing, and not generally "working" anymore. 15M++ means you bank with The Private Bank of Wells Fargo, have a ridiculous line of credit // no checking account, multip…

$5M doesn't go that far anymore. If you're young and you have $5M, you could take 4-5% per year and make it last 40-50 years. That's only $250,000 per year, pre tax. Good money, but certainly not enough to not have to think about money anymore.

Your $5M liquid would be earning interest the entire time too. With that much money, it'd be 'easy' to make 4% - 5%/year, so you could live on $250k/year and never touch the principle.

Re: Startup CEOs who gave up fortunes to turn employees into millionaires

#130
post #44

Earlier quoted context omitted.

I truly hope that Woz is remembered as the guy behind Apple's early greatness and Jobs as just a dickhead who set us all back. Not just developers with his no compete bullshit, but everyone with his stupid no ports aesthetic. How are people supposed to learn to tinker when everything is locked down??

If Jobs wasn't there you never would have ever heard of Apple. Keep that in mind

And without Woz there would be no Apple to hear of.
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