Question: In the Return Logic case, the VCs are putting up money to be spent by the firm in the future. If the VCs control the

In the Return Logic case, the VCs are putting up money to be spent by the firm in the future. If the VCs control the Board of Directors or have a vote on the Employee Option Pool, they are likely to try to save money by setting salaries and stock options so low that the company cannot attract well-qualified people, because their primary incentive is to stop the company from spending too much.
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