Managing a Business/future of start-up company
I recently got fired from a start-up company specializing in software development, after working for them for a year.
From my perspective everything seemed fine, until the following happened:
1. The CEO hired a president who seemed to be restructuring the company. Shortly after the new president started his job at the company there was not much left to do ( I was told that our product was being audited so there was a freeze in all development work ). I'd like to know ( or at least get an opinion on ) why a CEO would hire a president, who would then fire several employees.
2. Before I got laid off I was given many shares from the company. Then the president told me that he was expecting the company to be bought by a bigger one and then I could sell the shares back to the company so I can receive a bonus. Why would a company offer more shares to a just laid-off-employee and then call them back to buy the shares back?
In regards to point 2 my suspicion is that they offered me the shares hoping that I do not get too disappointed, when in reality these shares will never increase in value ( like a false hope so I don't get too upset), but I would like to have a better understanding of these business decisions ( point 1 and 2 )
Jake First when a company is ether in trouble or looking to be sold they will bring in someone who first will cut labor cost and streamline as much as they can. You are right as far as giving you shares. They want to keep the atmosphere as positive as they can so offering you a small piece of the company they fell you will keep a positive view for possible sale.