To give a little more detail on the financial issues raised shortly before (and then after) the departure:
Note the financial issues were only part of the discussion points, and we did continue to debate them after the departure. They amounted to:
- I asked about making the company’s finances more transparent, since those were often a mystery. This lack of clarity also interfered with the review process (in short, you can’t do reviews and give raises until finances are in order, and we always got held up on that as part of the process, sometimes for months, even if reviews had been written – this is apparently still the case).
- Feargus as CFO had total control over this part of the process. Unfortunately, it was hard to see behind the curtain, and that curtain was not only Feargus himself, but HR and also a number of long-time friends who worked offsite. I have never felt Feargus to be good with money and budgeting, and we had much different approaches on how to save, spend, and what amounted to raises and equal pay for employees. Our usual lack of funds ended up causing a lot of problems with publishers because we were very, very dependent on their payments, so we had little or no leverage or breathing room if disagreements arose - if we had funds in the bank, there's a number of things we could have handled differently.
- The problem is when we did have a lot of money in the bank, Feargus tended to spend it freely and rarely checked with other owners before doing so. Worse, when we had little in the bank, you learned to avoid him, as he’d interpret the depletion in funds as somehow a failing on your part (even if you weren’t being paid for months at a time, or worse, if you’d given the company loans to make payroll).
- Strangely, this particular point is likely one of the big triggers for the de-ownering: I asked why family members who didn’t work at the studio were doing on our payroll – notably, Feargus’s wife (other employees have spotted this as well and brought it up to me after I left since they saw her on spreadsheets, so either it didn’t get fixed or is still the norm). To be fair, I don’t know if she’s still on payroll or not as of today, but even for a while after my departure, she was still employed by the studio, and while she was, I had no idea what she was doing for us.
- I asked why the Fair Market Value of the company hadn’t been adjusted in 10 years (it was still sitting around what the company’s initial value was, which was almost nothing). It turned out none of the procedures for voting on this had ever taken place according to the company’s own bylaws. So I asked we resume our own procedure and vote on having it evaluated – which was ignored, then interrupted by being de-ownered before the shares could be re-evaluated (which was also good business, but again, poor ethics). I don’t know if not doing a FMV evaluation is legal or not, but guessing it is.
Any of these could have been a trigger for de-ownering, even the last one, but there were other issues brought up as well (non-financial) that continued to be discussed before or after I was no longer an employee. These weren’t resolved.
For the record, I would have been far more comfortable if the finances were managed by someone else, including any other owner (and despite my other feelings about the owners and their organization/communication, I would trust any of them more than Feargus with finances because at least they understood the basic principles of how to maintain a positive cashflow).
As an added benefit, you’d also remove a good deal of any potential defensiveness by having it managed by a neutral party when inquiring about it - hopefully. That may be naive, but I'd like to think so.
As another benefit, removing this aspect of his job would have been one less thing to distract Feargus, since he was already overseeing and doing too much that arguably he shouldn’t be doing, and he couldn’t keep track (or remember) the tasks he was asking for anyway. This was certainly the case in dealings after the departure, which made the problems more apparent. This may have changed since – any of this may have, but they were issues at the time.
Anyway, this wasn’t all the issues brought up, but it’s a good chunk of the financial issues that were causing problems overall.