While Theranos’ Board Can Give Advice, Founder Elizabeth Holmes Doesn’t Have To Listen
The situation at Theranos offers a stark reminder of the perils of investing in Silicon Valley, where it is common for founders to control a company, leaving boards with little real power, including over who should be chief executive.
The New York Times:
Theranos’s Fate Rests With A Founder Who Answers Only To Herself
It’s all up to Elizabeth Holmes. Theranos, a blood-testing lab started and led by Ms. Holmes that promised to revolutionize the industry, is now under criminal investigation and faces increasing skepticism about whether its core technology works. Several federal agencies are looking into the company’s operations. Ms. Holmes herself may have to answer to federal regulators about what she told investors. (Abelson, 4/24)