How to split equity without drawing blood
By Mike Moyer – We live in a world where entrepreneurs and early-stage company participants get taken advantage of so frequently that we hardly notice. Bad equity deals are the rule, not the exception. Fairness is rare.
The intent for fairness is there in the way equity is split among business partners, but the practice of fairness is not. This is a correctable problem.
When a person contributes to a start-up company and does not get paid for her contribution, she is putting her contribution at risk with the hopes of getting a future reward. And, while the timing and the amount of the future reward is unknowable, the amount of the contributions at risk is knowable. It is equal to the fair market value of the contributions.
Because it’s impossible to know when or even if the rewards will ever come, we can never know how much people must put at risk to get the rewards. Every contribution, therefore, is essentially a bet on the future of the company, and nobody knows when the betting will end. more> https://goo.gl/F3ELyY
Posted in Business, Economic development, Economy, Education, History, Leadership, Media
Tagged Chicago Booth, culture, Finance, Inequality, Startup
By Katy Steinmetz – The world’s most valuable venture-backed company is no doubt in crisis. And the story of Uber, in its extreme success and what may turn out to be extreme failures, is in some ways singular. But it also hits on issues in the technology industry that are far bigger than one company.
Silicon Valley has struggled for years with diversity and inclusion, as critics have wondered whether the industry can achieve its grand self-image: a bunch of brilliant minds set on making the world a better place, for whom no problem is too tough to solve, no status quo too established to upend.
Despite whistle-blowing at other companies about hostile office cultures and widespread acknowledgement that the industry needs to “do better” when it comes to hiring and retaining women and people of color, those problems have persisted.
The fact that Uber, the brightest product of the Silicon Valley ecosystem of the past several years, could become such an influential global powerhouse while seemingly neglecting its own workplace speaks to some of the reasons that broader progress, as many see it, has been slow.
The pressure for startups to grow fast — and the prospect of profits or an enriching “exit” for investors — can be blinding. Taking time to think about unsexy HR practices often feels antithetical to hard-charging disruption.
Company culture and bias can be hard things to see, much less change, especially if the people at the top believe they’re running a meritocracy. more> https://goo.gl/WwGncQ
Posted in Banking, Broadband, Business, Economic development, Economy, Education, Leadership, Media, Net, Regulations, Technology
Tagged Capital, culture, Exit strategy, Silicon Valley, Startup, Workplace
Working With Culture: the Way the Job Gets Done In Public Programs, Author: Anne Khademian.
By Howard Risher – “Culture Eats Strategy for Breakfast.” That quote is credited to the father of modern management, Peter Drucker. He was saying that leaders need to understand and address their organization’s culture in their planning.
Writers tell us that culture encompasses the values, beliefs, underlying assumptions, attitudes, and behaviors shared by a group of people. It sets forth the rules—unspoken and unwritten—for working together.
It’s relevant to reform because it governs behavior in work groups. It influences virtually every interaction of people in performing their jobs. It affects the time they start work, their tolerance for sexist comments, the way they deal with customers—everything.
Culture plays an important role in every successful organization. More than a few writers have argued that it would be great if government could develop a performance culture. That’s one where employees are committed to achieving results. Employees in high performing companies are energized by the culture. It’s reinforced by their reward and recognition practices. more> https://goo.gl/AiEOKL
Posted in Book review, Business, CONGRESS WATCH, Economic development, Economy, Education, History, Leadership, Media, Regulations
Tagged Business improvement, Congress Watch, culture, Government, Leadership, Organization, United States
The Protestant Ethic and the Spirit of Capitalism, Author: Max Weber.
Underdevelopment is a State of Mind, Author: Lawrence Harrison.
Culture Matters: How Values Shape Human Progress, Editors: Lawrence E. Harrison and Samuel P. Huntington.
Notes on a New Sociology of Economic Development, Author: Jeffrey Sachs.
To understand the eurozone crisis, consider culture
By Séamus A. Power – They call it the Kissinger Question. “If I want to call Europe, who do I call?” Henry Kissinger reportedly remarked in the 1970s, when he was US Secretary of State.
At the time, there was no European Union, and there was far less economic, fiscal, and political integration than today.
The Kissinger Question is a good one. The expanding political and fiscal union in Europe, motivated by a desire not to repeat the mistakes leading to the two world wars, rests on centuries of interrelated but distinct national beliefs, values, desires, and morals—factors that lie at the foundation of economic practices.
For example, the cultural psychological differences across the EU reveal some foundational issues at the heart of the current eurozone crisis. more> http://tinyurl.com/pwtwnf5
Posted in Banking, Book review, Economic development, Economy, Education, History, Leadership, Regulations
Tagged Banking reform, Capital, Chicago Booth, culture, Euro, Financial crisis, Leadership, Regulations, Super regions