from Hacker News

Ask HN: When a CEO Faces Complete Disgrace, How Do They Stay Afloat?

by burritofanatic on 2/1/19, 5:59 AM with 3 comments

My question is in the context of people like Elizabeth Holmes, who was charged by the SEC and currently being investigated by the FBI. She obviously cannot work any longer, and I suppose she was not reckless in her spending, so in the worst case scenario, she may have savings? But between lawyers fees, and falling out with many people, do CEOs like this go live with their parents, friends?

I know people do get back on their feet though, but it's the in-between period, the logistics that puzzles me. Is there a secret club that bails high flyers out?

  • by gtsteve on 2/4/19, 7:01 PM

    She can't be a director of a company for a long time, however she still built a business, raised money, built a huge profile and generated a massive amount of hype. Someone somewhere will want that experience on their team, and be willing to ignore the rest of the story (provided she can stay out of prison).

    I'm sure she still has friends, and some of those friends are perhaps wealthier than others. If your friend fell on hard times and you happened to have a spare guest house or apartment in a city you rarely visit, I'm sure you'd help them out if you could.

  • by zer00eyz on 2/1/19, 9:02 AM

    > Is there a secret club that bails high flyers out?

    It depends.

    In the case you mentioned (Elizabeth Holmes) she is well off and connected (via family) that at some point she will find some sort of work if she wishes.

    Thats fairly true for most people in a similar social strata - once your that far "in" someone has a vested interest in making sure you dont fall too far.

  • by rajacombinator on 2/1/19, 9:43 PM

    A lot of your assumptions are wrong. When you fail big enough there will always be plenty of opportunities to do so again. Failing small is much more dangerous.