What are the disadvantages of distributing founder shares equally among all co-founders?
A) The lack of a primary shareholder slows down the decision making process
B) CEO may be doing as much work as CEOs of comparable companies, but have less potential upside
C) Such distribution makes unwanted acquisitions easy
D) A and B
E) A and C

Question

Quizplus · Accepted Answer

Equal distribution of founder shares can slow down decision-making due to the lack of a primary shareholder and may result in the CEO having less potential upside despite similar workloads to CEOs in comparable companies.

What Are the Disadvantages of Distributing Founder Shares Equally Among