What about paying $90 million to the key person in creation of android? Honestly, he is a scumbag, but that doesn’t nullify his contribution to google (?) it’s not that he was paid for sexual harassment, it’s that he got paid for being creator of one of the most important products in the world.
He sold Android to Google in 2005 for a hefty sum, and he drew a large salary and stock package every year since. Why in the world would he need a $90M exit package on top of all that when he's being fired for severe workplace misconduct? He already got paid for those contributions.
Because Android is arguably worth a hell of a lot more than the $50 million + salary that he received and if they didn't kick him some money, they would never be able to make a similar acquisition deal in the future. Nobody would sell a technology like that for that little and Google would have to forever compete with future-Androids.
If they had fired him under more favorable circumstances his payout would have been significantly higher.
He sold the company to them in 2005. If he didn't think that was a fair price he wouldn't have agreed to the sale. That was when he was compensated for his creation. After that, he was compensated through salary.
I don't understand your point of view here. If I sell something to someone else, I'm not expecting to get more payout for it fifteen years down the line unless some kind of residual was explicitly negotiated in the original sale agreement. Acquisitions would never happen at all if the acquiring company was on the hook for unbounded amounts of money decades later just because they made it successful. This point of view seems very un-businesslike. Andy Rubin was not owed that $90M, it shouldn't have been paid to him, and Google has admitted to its mistake and will not be paying out in similar cases going forward.
1. It was an aquihire. Usually there's some performance secondary payout strings attached.
2. It doesn't matter what their deal was. It matters what public perception is. I'm talking entirely about public perception.
Regardless of what their deal was, Google has to send a signal that _impacts future deals_. If the general developer public thinks that Android was acquired for too little, then we will all be reluctant to sell our projects to Google. That's the whole point.
It has nothing to do with him thinking Google treated him fairly. It has to do with whether we think we could keep a company going long enough to make more money than his payout on _our_ work.
Google needs to make more Android-like deals in the future.
And all of that needs to be weighed against the huge worldwide negative PR resulting from the payout, the global walkout of tens of thousands of employees expressing their anger with the decision, and the depressive effect on hiring that has for specific targeted groups. You can't just analyze the payout in isolation; you have to analyze its sum total effects. Turns out, the payment wasn't worth it. Google has said as much and won't be doing it again in the future.
> If the general developer public thinks that Android was acquired for too little, then we will all be reluctant to sell our projects to Google. That's the whole point.
I'm still not understanding the point here. If you agree to sell your company for price $X, it doesn't matter who you're selling to; you've sold for that amount. If you think you should get more than $X, then don't sell to Google, or anyone else for that matter, for only $X. If you want less up front but more money over time as part of an incentive structure, then negotiate for that as part of the acquisition (which Andy Rubin did do and was paid out for). All of this is independent from a severance payout fully 15 years after the acquisition.
> Google needs to make more Android-like deals in the future.
I think you'd be hardpressed to find a founder that wouldn't sell to Google for what they consider the right price if he didn't get $90M. Do you think any football players don't want to play for the Patriots, because Aaron Hernandez wasn't supported by them? People get that all bets are off with criminally poor behavior.
Also, take a step back and consider how there was a worldwide walkout of 10k+ employees. That wouldn't have happened if Google's hands were tied here and they had been contractually forced to pay that money out to Andy Rubin. The outrage was because they knew about his misconduct and yet still chose to let him "retire" and give him a big amount of extra money, rather than firing him and giving him the $0 he was legally entitled to.
In settling on terms favorable to two of the men, Google protected its own interests. The company avoided messy and costly legal fights, and kept them from working for rivals as part of the separation agreements.
Real life isn't a melodrama. I suspect there's plenty of nuance here.
You shouldn't get severance packages if you're fired for egregious misbehavior. Google has admitted it was a mistake and will not be paying out severance packages in these situations going forward.
