Zenefits CEO David Sacks on his bold bet: Less than 10% of employees accepted ‘The Offer’

Last week, Zenefits CEO David Sacks made one of the more daring turnaround moves in recent Silicon Valley history.

Following several months of turmoil over compliance issues that led to the departure of the company’s founder in February, Sacks made what he called “The Offer.” In essence, any employee hired before February could take a generous buyout offer if they didn’t feel they could get behind his plan to save the company.

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In response, I wrote:

“And it is a remarkable dare that has put the entire future of the company on the line. In fact, in throwing down this particular gauntlet at this particular moment, Sacks is taking a risk that could torpedo the entire company.”

The deadline for accepting The Offer was last Thursday. So how’d it go?

Today, Sacks revealed in a series of tweets:

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1/ Very perceptive article about the The Offer, calling it a “bold move” “that could torpedo the entire company”. https://t.co/pVDOyY90sY

— David Sacks (@DavidSacks) June 21, 2016

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2/ Further: “we’ll find out if his faith in himself and his employees is rewarded. Or if Zenefits is headed to the unicorn burial ground.”

— David Sacks (@DavidSacks) June 21, 2016

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3/ Now we know the answer: Only ~10% of employees took The Offer. I’m so proud of the 90% who have recommitted to the new Zenefits.

— David Sacks (@DavidSacks) June 21, 2016

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4/ It really is a new company now: new values, mission, leadership, and focus on compliance. Employees deserved a choice. They made it well.

— David Sacks (@DavidSacks) June 21, 2016

No doubt, the 100 or so of the 1,100 employees who took the buyout will leave some holes to fill.

Still, it seems the bet paid off. And if Zenefits continues its comeback, Sacks’ moves in recent weeks will likely be remembered as one of Silicon Valley’s more amazing winning gambles.