It sounds like the employee is actually getting what they are worth. Lots of huge organizations require a single key person in order to function, and most of the time those key people are not compensated accordingly.

The company could have called the bluff and passed on the consulting services.

Extortion or price discovery?

> Maybe there’s a more charitable way to tell the story.

Yeah, management didn’t give the guy a raise so he quit and he could say no when they came begging.

If there’s anything that went wrong here it was management asking ‘what if we pay him more’ but not asking ‘what if we don’t’.

Without debating whether it’s ethical, it doesn’t sound like extortion. It sounds like taking advantage of dysfunctional decision making in an organization.

I assume he built his system and then onboarded the company as a client to it. Possible issue here is the degree of separation. If he ever worked on the system before he resigned, or re-used some concepts of it, then I’m sure company would sue him and take the system for free.

I’ve considered doing similar for one corp I’ve once worked with. The corp used an obscure hybrid cloud solution, unfortunately, the cloud provider didn’t really understand the corps needs (governance,devex,monitoring) making it impossible to do anything basic without manual action from an administrator. Pretty solvable with a couple of APIs and a few dashboards

Sounds like the guy just got tired of being on salary in a place that was badly run.

>> resigned as a full time employee, waited until the panic had set in properly

The company couldn't even function without that person. Calling that an extortion is quite a leap.

>Sounds like extortion with extra steps? Maybe there’s a more charitable way to tell the story.

How? The original company could have hired another employee to replace him, instead they entered into a b2b relationship with his company.

I've often considered something similar. I used to support a bunch of apps, where I thought "I could build most of these from scratch and they'd be better than what I'm supporting." Even if my employer didn't find value in them, and hired someone else to support the old junk, other companies would probably buy the new ones.

If the thing you're threatening a business with is "I'll stop working for you", how is that extortion?

If the employee deliberately made the IT infrastructure worse, then maybe that would be fraud, but it sounds like he was the main person who was improving it.