Ed the serial CEO has been foisted on his new company by the VC backers who want Ed to dress up the company for its forthcoming IPO. Ed's diary, which recently came into my hands, shows Ed finding the situation less straightforward than he expected.
'Today I went through our recurring expenses', writes Ed in one diary entry, 'the VCs have impressed on me that tight cost controls are vital in attracting investors for the IPO."
'One item stands out a mile: mutiple hundred thousands of dollars a year paid to a recipient named IMEC.'
'I call up our CFO.
'Who, or what, is IMEC?' I ask.
'A Belgian R&D house.' Says the CFO.
'Why are we paying them nearly half a million dollars a year?'
'To participate in their DNA-sensing semiconductor development programme.'
'Do we sell any DNA-sensing semiconductors?'
'Not so far as I know'.
At the next board meeting I propose cutting this out of the 2010 budget.
'Ed you're mad', says our CTO.
'Why, I'm told we don't sell any DNA-sensing semiconductors'.
'Not per se, but what do you think our new line of medical diagnosis products is going to be based on?'
Oh well. Only 354 days to the IPO, then I'm out of here with a huge chunk of change.
Hmm... Ed's real name wouldn't be "Rick" would it?
Now you're intrigued me, Ann on a Moose. Could there be more than one CEO like Ed?
I'm sure there are many, but the story above is strikingly similar to the actions of one I have come across very recently. So similar, in fact, that I wonder whether you might just have a little insider information...
Sorry to disappoint, Ann on a Moose, but Ed's real name is not Rick. But you've certainly got me going looking for a semi CEO called Rick.