Big Red Car here filled to overflowing with a good church sermon. I will have to digest it a bit.
So, one of the things the Big Red Car preaches to his CEO coaching clients is, “Retain control of your company at all costs. When you lose control, the probability of your being replaced goes up astronomically.”
This is what the Big Red Car says when a venture capitalist wants to make an investment resulting in an “after money” equity ownership of 20%, but wants two seats on a five-man Board of Directors.
“Uhhh, CEO, if the VC owns 20% then he gets 20% of the board seats. That’s one, not two!”
Interestingly enough, CEOs seem to always win this argument. This is a matter of control.