Keep the Power: Lessons From Mark Zuckerberg
He Kept Not One, But Two, Board Seats
When Sean Parker became president of Facebook in 2004, he was careful to ensure that the young Zuckerberg retained a sizable equity stake in the company. When Facebook took on its first round of financing in 2005, for $13 million, Parker pushed for a high valuation of the company—about $100 million at the time. Perhaps more important, Parker set up the board structure so that Zuckerberg would have two seats, making it tougher for the board to give Zuckerberg a hard time. And when Parker was edged out of the company later that year, he gave his own seat to Zuckerberg.