anagement is the cornerstone of every technology company. In the case of Chegg, management has been the driving force as the Company has transitioned from a textbook reseller to a tutor service for students.
However, research into management's past show some real question marks.
CEO Dan Rosensweig has a questionable track record of delivering value to shareholders. Specifically, the acquisition of Kelkoo that Rosensweig championed at Yahoo was at a eye-popping $574m.
Here are his comments post the deal: " "They're a super fast-growing company that strategically fits," said Dan Rosensweig, Yahoo's chief operating officer, in an interview."
Yahoo! sold Kelkoo four years later for <$100m.
Furthermore, Rosensweig has been accused of inappropriate behavior in the past. From the Ellen Pao lawsuit.
"Stephen Hirschfeld, the private investigator Kleiner Perkins hired to look into the two women's allegations, testified that "Nazre pursued Vassallo twice while at Kleiner and that Nazre had repeatedly lied to him," Business Insider reported. Nazre was fired in January 2012.
Hirschfeld also recalled Pao telling him about a plane trip with Dan Rosensweig, CEO of Kleiner-funded company Chegg, and senior KPCB partners. He said Pao described Rosensweig discussing the Playboy mansion, porn stars, and Victoria's Secret, and asking if they could get Yahoo CEO Marissa Mayer (then an executive with Google) on the Chegg board because she's "really hot."
Andrew Brown was CFO at PALM from 2004-2010. Over that time period. PALM had the following stats:
- Burned over $1bn of cash
- Multiple failed product launches
- Stock market value crumbled 60%
Are these high value executives worthy of our trust? In particular with a Company where Stock Comp Expense + Capex is > 100% of Adjusted EBITDA and the Company continues to burn cash?