OpenAI cofounder and chief executive Sam Altman: recent turmoil highlights the complexities of balancing founder influence with the structures needed to safeguard a company’s future. Photograph: Jason Redmond/AFP via Getty ImagesThe story is familiar – the visionary founder builds a successful company from scratch but as the business matures, they obstruct effective oversight.
Even then, they may retain control over key decisions and leadership appointments through voting rights that in effect mean they have not ceded much power at all.but led the aggressive expansion of the coffee chain, returned to the helm twice after stepping down and has had huge sway over the board.
“Lots of founders are concerned the chair is going to come in and fire them,” says Rachel Ingram at Cadmium Partners, a board services firm that specialises in tech companies. “But finding a skilled chair who can support them and help scale a business can be a game-changer.” Pippa Begg, co-chief executive of Board Intelligence, a technology and advisory firm, suggests directors do their due diligence properly and ensure their interests are aligned before joining a founder-led board. They should consider issues such as where voting rights lie and what powers directors have.
But he noted another founder had a more self-serving perspective – they wanted “mostly decent people who will not make job more difficult”. “Understanding which you are potentially joining is incredibly helpful,” adds Baumgarten.