Execs can have bigger voids due to gardening leave, non competes so it looks OK. But honestly because you can (in theory) lie on your CV it ain’t worth worrying about. So the scenario where you die because you run out of money and need a job because of a gap can be remediated that way. Change the dates or something.
Yes, means you're still paid by the company but have essentially no duties. One way of making their inside knowledge somewhat stale before they officially leave.
Every contract has some crap in for what seems like unlikely scenarios. If you can’t negotiate it out it is either that or the highway. If these startups could get YC funding they probably would have. So for some it is accept a possible imperfect contract or back to employment. Employment itself being full of contracts with crap clauses as well as common law itself having crap. Show me the perfect contract!
> If you can’t negotiate it out it is either that or the highway
That is generally how contracts work. You get something and you give something in return. Nothing comes free. If the deal was better then "the highway", you have no cause to complain when the other side comes to collect their part.
Especially for a sophisticated party like a company. Things are a little different for individuals like employees where the power imbalance is coercive. However when it comes to a company, as long as it wasn't outright fraud, i have very little sympathy that they are having buyers remorse over a bad deal.
Would have been nice for the bankruptcy company (what is the term… administrator? receiver?) to try to sell the portfolio of investments as-is to another VC. This may have both kept the startups alive and got them more $ overall for creditors. Maybe this would have been more doable in 2020!
