Okay take the case of Bezos and Gates. They both resigned from their own companies. Like how do you do that? Aren’t you supposed to like have total autonomy because the company is yours anyway. I understand the shares part, but how tf do you resign from your own property?
EDIT: I have successfully understood the whole dynamics, Thanks to those who answered
In: Economics
Founders Syndrome – Company founders that retain too much control over the very company they built eventually stop being an asset to said company and become an active detriment to its success.
Colonel Sanders and Papa John Schnatter are two of the most famous examples. Company founders who also were the face of the company that were forced to resign in disgrace because they repeatedly said things in the media that made the company look bad.
Company founders rarely finish their tenure as majority share holders. They sell parts of the company as they get bigger in exchange for the investment that comes with it.
Since they aren’t the majority share holder anymore, they don’t have autocratic and undisputed control over the company.
The board of Directors acting on behalf of the shareholders can essentially fire the original owner.
The original owner retains their shares, and the wealth that comes with it. But they lose their position as CEO or whichever.
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