On IPOs: don't the investment banks structure volume and price pre IPO in order to make sure that the IPO doesn't "break"? I would imagine that the owners of the IPO-ing company would want to write that into the contract somehow, after all that's what they're paying the IBs to do - price equity and court investors in order to ensure a successful IPO with a pop up in price that benefits shareholders. Or are they being structured with a quick exit at a high price for the founders in mind, which can then screw over locked out employees?
On employees getting screwed: I think Robert Solow had a great piece explaining why investors & business owners are capturing a larger share of corporate profits than employees. [1] Basically, regulation has become increasingly pro-corporation, anti-employee/union since Reagan, and this allows the investing class to capture a larger share of the economic "rent" profits created by regulation, much like land ownership regulation allows a landlord to extract rent from a tenant. Explained better here: https://news.ycombinator.com/item?id=10054735
On employees getting screwed: I think Robert Solow had a great piece explaining why investors & business owners are capturing a larger share of corporate profits than employees. [1] Basically, regulation has become increasingly pro-corporation, anti-employee/union since Reagan, and this allows the investing class to capture a larger share of the economic "rent" profits created by regulation, much like land ownership regulation allows a landlord to extract rent from a tenant. Explained better here: https://news.ycombinator.com/item?id=10054735
[1] http://www.psmag.com/business-economics/the-future-of-work-w...