Some tech companies are so desperate to hire fresh talent they’re acquiring companies to absorb their founders, according to a recent post on Morrison Foerster’s Tech Blog. For example, Yahoo Inc. tweeted about adding 22 entrepreneurs to their mobile team in May by buying the three start-ups at which the new recruits worked, also known as “acqui-hires.”
However, MoFo partner Christine Lyon warns these new employees are used to having autonomy and decision-making authority, which may present challenges to the larger tech companies. To compensate, oftentimes they’re offered incentives such as equity grants and performance based rewards, according to the blog, which also suggests locking them into noncompete agreements to prevent them from jumping tech ship.
