How much of an impact can one key hire have on a start-up? In this clip from "3 Minute Stock Updates" on Motley Fool Live, recorded on Jan. 5, Motley Fool contributor Brian Withers talks about how a recent recruit at Lemonade (LMND 5.57%) is cause for excitement for investors.
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Brian Withers: Let me talk about Lemonade. In November, Lemonade announced they made a hire of Sean Burgess. Well, that's just one employee. Why does that matter to investors? Well, it turns out that he was at USAA for 27 years and was its Chief Claims Officer and was hired in Lemonade to have that same job. I think this is a great sign that the company is able to recruit experienced executives from the established competition. And you know what? It's especially cool that he wrote about recently why he made the move in Lemonade's blog. He started out explaining where he was, his history, and he said, the company, Lemonade, which recently celebrated 5 years in market has captivated me since its launch. I've been intrigued by their approach to innovating in a centuries-old industry. He interviewed with CEO Daniel Schreiber and he explained that Daniel Schreiber asked him, "Why would you ever want to leave USAA after such a long career with such an admirable company? Why move from a Fortune 100 company with all the perks that it comes with to a start-up like us? You probably won't like scheduling your own meetings. We don't use PowerPoint. We communicate overwhelmingly on Slack." He said as he went through the interviews, the craziest thing happened. As he talked to leader after leader at Lemonade, he found himself grinning from ear-to-ear. Everyone was so transparent, down-to-earth, and innovative. They loved insurance and were working to make every bit of it lovable. Not a word used to describe the industry which I personally love so much. Him being Sean. But he was hooked and pretty sure subconsciously, he started wearing more pink, which is Lemonade's color too. I think this is really exciting for the future of Lemonade i.e., being able to hire forward-thinking individuals who have a tremendous amount of experience in the industry from really well-known companies. I bet this won't be the last.
