Steve Blank

article thumbnail

Why GE’s Jeff Immelt Lost His Job – Disruption and Activist Investors

Steve Blank

During Jeff Immelt’s tenure GE’s stock-market value fell by about half. Its stock is trading where it was 20 years ago. So far in 2017, GE is the worst performing stock on the Dow Jones Industrial average. billion of GE stock – about 1.5% In fact, what happened is activist investors. of the company.

article thumbnail

Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

For most startup employee’s startup stock options are now a bad deal. Why Startups Offer Stock Options. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. Not everyone got the same amount of stock.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why good people leave large tech companies

Steve Blank

It was so compelling, everyone worked extremely long hours, for little pay and some stock. And those early employees got rewarded as their stock turned into cash. The problem was that at some point past employee 1000, the big payoffs ended from pre-public stock and the stock’s subsequent run-up from their IPO.

article thumbnail

Leaving Government for the Private Sector – Part 2

Steve Blank

Advisory Board members are often paid in a balance of equity (stock options) and cash (“cash” is the industry term for money wired to your bank account). If you join a big company, assuming it’s public, you’ll get stock which immediately can translate into financial gains assuming the company performs well.

article thumbnail

You Negotiate Commodities, But You Seize Opportunities

Steve Blank

At one of our initial board meetings we had agreed on the general principle of an advisory board and put together an overall stock budget to compensate advisors. Over the next week we exchanged emails over advisory board stock. I could get him the stock he asked for approved at my board meeting and then reply.

article thumbnail

Why the Future of Tesla May Depend on Knowing What Happened to Billy Durant

Steve Blank

At the time he was not only running GM but was a major Wall Street speculator (even on GM stock) and was big in the New York social scene. Meanwhile, inventory was piling up, the stock was cratering, and the company was running out of cash. Durant had another great four years at the helm of GM. But trouble was on the horizon.

Cofounder 268
article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Some even insisted that all prior preferred stock had to be converted to common stock. Other times it was simply a take-it-or-leave-it, here are the new terms.

Cram Down 404