Power Shift At The Top: A Look At Forced Exits Of High-Profile Founder-CEOs

Steve Jobs:Founded Apple in 1976; Year of Exit - 1985.

Steve Jobs was fired following disagreement with then CEO John Sculley and the board of Apple over two new products -- the Lisa and the Macintosh -- that had failed to meet sales expectations. Jobs' management style, described as autocratic and abrasive, also contributed to the decision.

Jobs' exit is often seen as a pivotal moment in Apple's history. Media and experts have noted that while Jobs' leadership style was challenging, his vision was integral to Apple's innovation. His firing was a result of a power struggle and differing visions for the company's future.

After leaving Apple, Jobs founded NeXT, a computer company that produced high-end computers. In a twist of fate, Apple acquired NeXT in 1996 for US$429 million, which led to Jobs returning to the company he co-founded in 1976. He then led Apple to become one of the most successful businesses and brands of all time.

Travis Kalanick:Founded Uber in 2010; Year of exit - 2017

Travis Kalanick resigned from his position as CEO of Uber in 2017. It was understood that his departure was influenced by a series of controversies and challenges facing the company, including issues related to company culture, allegations of sexual harassment, and legal battles.

The media and experts largely viewed Kalanick's exit as a response to the mounting pressure from investors and the public due to the various scandals and operational challenges Uber was facing. His leadership style, which was often described as aggressive and uncompromising, was seen as both a driving force behind Uber's rapid growth and a contributing factor to its internal and external issues.

After leaving Uber, Kalanick has focused on a startup named CloudKitchens, which is a provider of smart kitchens for delivery-only restaurants.

Jerry Yang:Founded Yahoo in 1994; Year of exit - 2012

Jerry Yang, the co-founder of Yahoo, resigned from the company's board of directors and all other positions at Yahoo in 2012. His resignation came in the wake of increasing pressure from shareholders dissatisfied with the direction of the company and its performance.

Yang's exit is seen as a significant turning point for Yahoo, the end of an era early internet pioneers. Yang had been criticised for his handling of the company's affairs, including the rejection of Microsoft's buyout offer in 2008, which was seen as a missed opportunity.

After leaving Yahoo, Yang focused on becoming a mentor and investor in technology startups. He founded AME Cloud Ventures, a venture capital firm that invests in a range of technology sectors, including data analytics, cloud computing, and mobile technology.

Jack Dorsey:Founded Twitter in 2006; Year of Exit - 2021.

The official reason for Jack Dorsey's resignation from the post of CEO at Twitter was not explicitly stated as a ‘firing’. However, the immediate nature of his departure, without a transition period, and his decision to leave the board in May, 2022 indicated that he might not have had much say in the matter.

There are varying interpretations of Dorsey's departure. Some suggest that he was ousted, while others believe he resigned of his own accord. In 2020, Elliott Management, a hedge fund known for activist investing, purchased a significant stake in Twitter and began a campaign to demand changes, including getting rid of Dorsey. The situation mirrored the tension between Dorsey's vision for Twitter and the pressure from investors for better performance and more focused leadership.

Adam Neumann: Founded WeWork in 2010; Year of Exit - 2019

Adam Neumann was fired over allegations of mishandling of company affairs and drug use that came to light just about the time WeWork, a company he co-founded with Miguel McKelvey in 2010 to provide co-working space, was preparing for it initial public offering (IPO). The revelations led to the company's valuation falling by half and forcing it to call off the IPO.

Neumann had to vote for his removal from the CEO's job, but not before negotiating a US$445 million exit payout for himself. Neumann's eccentric style and his bohemian lifestyle was cited as the biggest reason for the his and his company's failure.

Sean Rad: Founded Tinder in 2012; Year of Exit - 2014, 2016.

Sean Rad held two tenures as CEO of Tinder, the dating app. He was first removed from the job in 2014, following a sexual harassment lawsuit involving the company. The lawsuit, which involved allegations against Tinder's co-founder Justin Mateen, raised questions about the company's culture and leadership under Rad.

Rad was reinstated as CEO later but eventually stepped down again to serve as the chairman of Tinder in 2016.

His leadership was scrutinised, and the decision to replace him was seen as an attempt to stabilise the company and improve its public image.

After stepping down as CEO of Tinder, Sean Rad continues to be involved in the tech and entrepreneurial space. He transitioned to the role of chairman at Tinder, where he remains involved in a strategic capacity.

Sachin Bansal and Binny Bansal: Founded Flipkart in 2007; Year of exit: 2018

The Bansal brothers founded Flipkart in 2007, to emulate the success of Amazon. The company grew through a series of acquisitions, some of which later turned out to be sunken investment. In 2018, Global retail giant Walmart acquired a 77 per cent stake in the company, following which Sachin Bansal quit the company and Binny Bansal stayed on as CEO under the deal agreed with the new owners. Binny Bansal's run at Walmart-owned Flipkart, however, proved to be short-lived, amid allegations of "personal misconduct.

After leaving Flipkart, Sachin Bansal invested in several Indian startups and launched a venture called Navi, focusing on the financial services sector. Binny Bansal, after his exit, continued to be involved in the startup ecosystem, investing in new ventures and mentoring entrepreneurs.

Andrew Mason: Founded Groupon in 2008;Year of exit: 2013

Andrew Mason was fired from his position as CEO of Groupon in 2013, following several quarters of disappointing earnings at the American e-commerce marketplace. The company's performance under Mason's leadership had increasingly come under scrutiny, especially given the rapid decline in its stock price following an IPO.

The board's decision to remove Mason was seen as a response to these challenges and an attempt to improve the company's strategic direction and financial health.

Mason's firing was viewed as an inevitable outcome given Groupon's poor financial performance and the pressures from shareholders for a turnaround. Mason's leadership style, which was often seen as unconventional, was also a subject of discussion.

After leaving Groupon, Mason took a less conventional path. He moved to San Francisco and started a company called Detour, which offered audio walking tours.

Sandy Lerner: Founded Cisco in 1984;Year of exit: 1990

Sandy Lerner, co-founder of Cisco, was fired from the company in 1990. The specific reasons for her firing were not extensively detailed in public statements. However, it is known that her exit occurred after Cisco's venture capital backers, including Sequoia Capital, took a more active role in the company. The change in Cisco's leadership and direction, influenced by its investors, led to a clash with the founders, resulting in Lerner's departure.

Lerner's sacking is viewed as a classic example of the tensions that can arise between founders and venture capitalists. Her departure was seen as a result of disagreements over the company's strategic direction and management style. Lerner's firing is often cited in discussions about the challenges faced by founders in retaining control over their companies once they accept venture capital investment.

After leaving Cisco, Lerner pursued a variety of interests. She co-founded Urban Decay, a cosmetics company known for its edgy approach to beauty products, which was a significant shift from her work in the tech industry. Lerner is also known for her involvement in sustainable farming and animal welfare through her work at Ayrshire Farm in Virginia.