Reducing his shares from 20 votes each to 3 was a start, but he really ought to only have the same stock class that retail investors will possibly eventually get. That’s the only way to keep founders in check.
Kozlowski, prior to trial, asserted his innocence by stating, "I am absolutely not guilty of the charges. There was no criminal intent here. Nothing was hidden. There were no shredded documents. All the information the prosecutors got was directly off the books and records of the company."
the larceny charges at the heart of the case did not depend on whether the defendants took the money—they did—but whether they were authorized to take it
All these cases show is the very nuanced thing they did wrong, and how to do the same thing within the frameworks available.
The decision making authority and the written latitude available for it. They paid excessive ambigious things.
Very different from selling shares you own at market values and leasing property you own back to the company, and IP trading. This is the fun you see at WeWork.
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Feels like they need to clean house at whoever invested billions in a company run by a guy embezzling and his in-laws.
Reducing his shares from 20 votes each to 3 was a start, but he really ought to only have the same stock class that retail investors will possibly eventually get. That’s the only way to keep founders in check.
The thing I like about finance is how you can make things legal simply by writing the action in a contract and by sometimes disclosing the contract.
tell that to Dennis Kozlowski
https://en.wikipedia.org/wiki/Dennis_Kozlowski
https://en.wikipedia.org/wiki/Faithless_servant
All these cases show is the very nuanced thing they did wrong, and how to do the same thing within the frameworks available.
The decision making authority and the written latitude available for it. They paid excessive ambigious things.
Very different from selling shares you own at market values and leasing property you own back to the company, and IP trading. This is the fun you see at WeWork.
This was a really interesting case. I agree with the civil rights lawyers who fiercely criticized putting it in front of jurors.
Then why didn’t he request a bench trial by a judge?