Remove class-readers
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Your board should protect you!

Berkonomics

They can elect directors for their class of stock, approve mergers and acquisitions; approve increases or changes to the capital structure of the company and other more minor actions. Email readers, continue here…] It is the board, made up of individual members, that is responsible for the care and maintenance of the corporate person.

Class 282
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Fight for balance on your board!

Berkonomics

Email readers, continue here…] Some board members find themselves debating whether there should be an expansion from five to seven, from seven to nine or more to allow for such a mixture of protective seats created by the investment documents and balance with outside board members. How about the size of the board?

Class 156
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Wow! Are your relationships important!

Berkonomics

Email readers, continue here…] I am chairman of the Technology Division of the ABL Organization, a roundtable organization with multiple CEO roundtables of about twelve members each, meeting monthly. It is from over a thousand of these CEO presentations over the years that I attempt to make the following generalities.

Class 194
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Be careful about equity and options!

Berkonomics

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. How about multiple classes of stock?

Equity 156
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Are you at risk for tech killing your job?

Berkonomics

And the prime motivators of this massive destruction are the same class of entrepreneurs and innovators that have done it before. Email readers, continue here…] By 2024, at least ninety percent of the global population will have regular Internet access. Thought so. That is six-tenths of one percent of the world’s population.

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What do you give up when you take outside investors?

Berkonomics

The last money has the first say – in valuation and in sometimes forcing draconian terms that require prior investors to contribute a proportional new investment to retain a semblance of their original rights and avoid dilution or worse yet, involuntary conversion to a lower class of stock. The newest investor has the power.

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Your eye of the needle: Do you worry over bottlenecks?

Berkonomics

Think for a minute whether there is any process or person that could be classed as the eye of the needle in your organization. Email readers, continue here…] Sure, you should worry over quality and speed of service. Here’s your question to ponder…. The lesson learned.