Advice For Employees of A Company That IPOs

Back in November of 2002, we completed our IPO process at CME that we started in 1997.  I thought I would pass on a little advice to Snap employees from my experience.  I suppose they are being hounded by wealth managers with a lot of advice as we speak.  There are no real wrong moves here.  Be in the moment, and be true to yourself. I turned a Tweetstorm into a Twitter moment. Here it is. You will have to click the link to see the Tweetstorm.

Best of luck to the Snap employees. Keep working on building something great. I’d love to see every startup that is worth a lot of money based on financing to go public. It’s good for the company. It’s good for capitalism. It’s good because it lets the average Joe’s on the street have a shot at building wealth.

  • awaldstein

    In concept I agree that public is a great place to be for the sector generally.

    If I ever do it again at a leadership level, I will spend more time insuring that the board is right and that there are mentors for the senior staff.

    If you have done this a few times over a career, you do not forget the stress of it and the maturity it takes to manage this into the culture.

    • No doubt.

    • JLM

      If you go public, you lose the ability to build the board unless, like SnapChat, you control the voting stock, in which instance you will want a board of idiots to embrace that idea.

      Shareholders elect the Board.

      The Board appoints and retains the management.

      The Board and management have a sacred, fiduciary duty to the shareholders.


      • meh, Usually there is a board committee that appoints who runs on the proxy. There can be proxy fights, but they are expensive, and not typical.

        • JLM

          Public companies have to have a majority of independent directors. When the management controls the shares (votes) independence is a relative thing.

          When the management does not control the independent directors — God forbid — may actually be independent.

          SOx scrambled what a company can do at the board level to perpetuate the inbreeding.


          • Key is most of the time, they control the independent directors. That’s why people like Carl Ichan are necessary. It’s very expensive to mount an attack. That’s probably a good thing.

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