{"id":12059,"date":"2024-07-28T14:05:47","date_gmt":"2024-07-28T14:05:47","guid":{"rendered":"https:\/\/topat10.com\/?p=12059"},"modified":"2024-07-28T14:05:47","modified_gmt":"2024-07-28T14:05:47","slug":"billionaire-ceo-jay-chaudhry-made-his-employees-into-millionaires-after-selling-his-startup-people-were-going-crazy","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=12059","title":{"rendered":"Billionaire CEO Jay Chaudhry made his employees into millionaires after selling his startup\u2014\u2019people were going crazy\u2019"},"content":{"rendered":"\n
\n

Jay Chaudhry left his work send-off unknowingly partying with millionaires. It was the late 90\u2019s and he\u2019d just sold his startup SecureIT, which he co-founded with his wife Jyoti, to Verisign. Perhaps his employees threw an extra nice celebration or splurged on the decor, because when Chaudhry left, he did some math on the net worth of his attendees.<\/p>\n

\n

\u201cI went home that night and looked at the spreadsheet of all the [stock] options they had, and I multiplied by the stock price of VeriSign. That\u2019s when I realized that the math was about 70 or 80 millionaires, with stock options,\u201d Chaudhry told CNBC<\/em>\u2019s Make It<\/a>. \u201cIt was impressive,\u201d he adds, explaining he didn\u2019t really understand the financial windfall that selling his startup would have on his co-workers.<\/p>\n

Now the CEO of cloud-security company Zscaler<\/a>, Chaudhry, age 65, is a billionaire<\/a>. But he had emptied out all of his joint savings with his wife when they started SecureIT, Chaudhry told CNBC<\/em>. He said this move and independence from external investors allowed them to give more equity to those within the company.<\/p>\n

When he sold his company in 1998, Chaudhry wasn\u2019t the only one walking away with a padded wallet. Verisign\u2019s stock price surged in the coming years, making more than 70 of his 80 employees into \u201con, paper millionaires.\u201d\u00a0<\/p>\n

In the same vein, entrepreneur Mark Cuban<\/a> recently tweeted that most of his sales resulted in bonuses for his employees. His sale of Broadcast.com to Yahoo<\/a> meant Cuban became a billionaire and \u201c300 out of 330 employees became millionaires.\u201d<\/p>\n

\u201cIt\u2019s the right thing to do. No company is built alone,\u201d Cuban told Fortune<\/em>.<\/p>\n

Chaudhry is of a similar mentality. He told CNBC<\/em> the equity distribution was \u201cgood, because those employees make the difference \u2014 they [were] working day and night.\u201d<\/p>\n

But long-term financial success was not a given. VeriSign shares plunged<\/a> during the dotcom burst before eventually recovering, leaving employees with more or less worth depending on if they cashed out at an inopportune time.\u00a0<\/p>\n

During the surge though, there was a palpable feeling of excitement throughout the office. \u201cPeople were going crazy in the company, because they had never thought of so much money,\u201d he told CNBC<\/em>, speaking of many employees buying new houses, cars, or taking time off of work. \u201cThey could do what they wanted to do.\u201d<\/p>\n<\/div>\n

Recommended Newsletter:<\/strong> CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Jay Chaudhry left his work send-off unknowingly partying with millionaires. It was the late 90\u2019s and he\u2019d just sold his startup SecureIT, which he co-founded with his wife Jyoti, to Verisign. Perhaps his employees threw an extra nice celebration or splurged on the decor, because when Chaudhry left, he did some math on the net […]<\/p>\n","protected":false},"author":48,"featured_media":12060,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-12059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nBillionaire CEO Jay Chaudhry made his employees into millionaires after selling his startup\u2014\u2019people were going crazy\u2019 | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"\u201cPeople were going crazy," said Chaudhry, 65.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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