Leaving as billionaires, they created the relentless positivity of Silicon Valley. Pinterest is “just getting started,” Airbnb is “in the best hands it’s ever had,” and Instacart has “huge opportunity ahead,” the founders wrote. Both Mr. Mehta and Mr. Gebbia said they had plans for new projects.
Investors say they’re more anticipating these resignations from founders, who realize they now have to work harder for less pay (relatively speaking). “They can now let several executives take over, take over and grow it with different incentives,” Cohen said.
Last week, Brad Hargreaves, founder of Common, a startup that operates co-living spaces, announced he would step down as chief executive officer, becoming creative director. The company’s head of real estate, Karlene Holloman, a veteran of the hotel industry, will take over as chief operating officer.
The market downturn influenced Mr. Hargreaves’ decision. In difficult times, he said, it’s good to have a founder at the top of the company who can sell investors, employees and customers on a grand vision. “Activity really doesn’t matter much,” he said. “Nobody really follows the bottom line.”
He said: “Today’s environment requires someone with Ms. Holloman’s extensive experience and executive skills. “In tighter times, when operations matter and nobody has the foresight, you want an executive in that position,” he said.
“Many founder-CEOs stick around for too long,” he added.
Founders have so far continued amid the downturn — and there are many, including at Stripe, Coinbase, and Discord — that can expect greater demand and more pressure. Stock trading app Robinhood has laid off more than 1,000 employees this year due to the loss of active customers. Dan Dolev, an analyst at Mizuho Securities, said some investors have privately asked Robinhood to bring in a more seasoned executive to help its co-founder, Vlad Tenev. Mr. Tenev cannot be coerced, as he and his co-founder, Baiju Bhatt, jointly hold a controlling stake in the company.
