[kurthr]

Indeed... it's likely that the board issued themselves new stock to prevent their dilution, but not yours.

As an extreme example, I watched a startup in a private sale issue new stock to those on the board such that all of the other early (0.1-0.5% stock ownership) employees were diluted to $0.01. The total valuation was in the $100M range. It was a good way to make a few enemies and retire at 30.

In the end the acquiring company ended up having to hire some of those employees back for consulting... I believe several of them received >$1k/hr. Most of those employees suspect that the acquiring company tacitly signed off on the issuance of new stock.

[shostack]

You bring up a good point though which is that if you stand to make millions and retire early, and it comes at the expense of your employees making a comparable amount, is it worth it to screw them over?

Unfortunately in this messed up world and rollercoaster economy the answer is often yes, it is better to put yourself first. Not that I would, but I can see how those who do justify it.