Startup Moneyball
Instagram’s CEO Kevin Systrom received almost $400M from his company’s $1B acquisition by Facebook. Snapchat CEO Evan Spiegel could’ve received even more for the $3B that Facebook offered for his company. The CEO’s of WhatsApp is likely a billionaire from the $19B that his company was purchased for. These amounts of money are mind-boggling to people outside of the top 0.01%, but it seems like hardly a week can go by in the news in which there isn’t an announcement about a startup founder (typically a CEO or executive) that received a payout in the millions or tens of millions of dollars, or more. While I often hear the argument that these payouts are unfair, egregious, etc, my problem with them is much mundane: the people who get them are usually not worth the amount of money that they receive.
“Worth”, of course, is a very subjective term. If you are a pure free-market conservative...