‹ BackHN Continuity

Thread

MongoDB CEO resigns to join Meta

366 points · 306 comments · diek

  1. fred_is_fred · · focus · HN ↗
    As a non-joke question - I am surprised a CEO can do this. Wouldn't there be contract terms about notice period, orderly transition etc?
    1. next_xibalba · · focus · HN ↗
      Likely anything that goes beyond missing out on compensation (ex: unvested RSUs) or even clawing back some comp would violate labor laws. CEOs are still employees, and legislation regulating employer-employee relations trumps all contracts.
      1. rcxdude · · focus · HN ↗
        A lot of these labor laws get less protective for higher-ranked people in a company, whether it be due to thresholds based on compensation or explicit carve-outs for executives/board members. It varies a lot from place to place.
        1. neom · · focus · HN ↗
          In the US, there is only one labor law that is different for execs and high paid employees and that is overtime rules. Fiduciary duty does govern how a director or officer behaves while in the role, loyalty, no self-dealing, no stealing corporate opportunities etc. It doesn't oblige them to stay or dictate how they must leave.

          In US and English law, "specific performance", so a court ordering you to do what you promised, isn't available for personal service contracts. In the US that's reinforced by the 13th Amendment's ban on involuntary servitude. So even if a CEO signed a contract promising 6 months notice and a smooth handover, the company can't make them do it, they can only enforce any financial penalties that are contracted.

Open on Hacker News to reply ↗

Unofficial Hacker News client; not affiliated with Y Combinator.