Webvan Shareholders Get Nothing – While Shaheen Makes Out
from the who-said-dot-coms-were-fair? dept
Everyone seemed to be reporting on the fact that Webvan has made it clear that it’s shareholders aren’t likely to get anything after all the liquidation is done. I thought this was pretty silly to report on – because shareholders are always the last in line, and almost never get a cent. However, this other article points out that George Shaheen’s absolutely ridiculous severance package ($375,000/year for life) is “unsecured debt” which Webvan expects to pay off. So, Shaheen made out perfectly. He brought the company down and left them with just enough in the way of assets to keep him comfortable for life, while all of his former employees and shareholders get shafted.
