A group of startups that includes Twitter is petitioning the SEC to amend a rule requiring them...

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bkpark Comments (325)
 
Maybe they should be paying employees *cash*, not options that could be worthless in a few years, especially once they've reached certain size and age.

I mean, how many employees do they have who can materially impact the company's fortunes so that there is some incentive-aligning argument to be made?
14 Dec 2011, 01:34 PM Reply Like

wyostocks Comments (5337)
 
Isn't this akin to asking the referee at a football game to change the rules at halftime because the other team is better at playing under the existing rules?
14 Dec 2011, 01:44 PM Reply Like

Stone Fox Capital Comments (4545)
 
thats what they get for growing so big yet not making profits. When you've 500 people relying on the shares, the info should be public.
14 Dec 2011, 01:44 PM Reply Like

SA Editor Eric Jhonsa Comments (563)
 
Indirectly, I think this complaint amounts to a shot at Sarbanes-Oxley. The startups are effectively saying that going public amounts to a major headache they'd prefer to avoid, at least for the time being.
14 Dec 2011, 01:52 PM Reply Like

wyostocks Comments (5337)
 
Eric
If you are right then it all the more reason for the request to be denied. Why should they have an advantage to be allowed to scrimp on SG&A expenses and internal controls. After all, 500 "owners" is a pretty high number.
14 Dec 2011, 02:02 PM Reply Like

kmi Comments (3844)
 
The rules of law and fairplay are just an inconvenience now are they.

Quaint byproducts of another era?
14 Dec 2011, 05:37 PM Reply Like