Record Label Executives aren't out finding bands. They have low-level lackeys that do that. Designated representatives are the guys that put on the "hip" face for the company, not anyone with actual power and connections. The only real important thing about them is that they've been designated to hold the keys to the kingdom. Their main purpose is to get the band to sign a preliminary agreement to prevent them from signing with anyone else. [1]
By the time you get to the actual contract, the deal is a complicated 40-page mess that could very well be screwing the artists using a variety of different tricks. [2]
The YC teams can confirm or deny this, but from everything I've read, the terms are quite clear and straightforward. The basic exchange is funding and support for shares in the company, though there may be some relevant adjustments on an individual basis. Participants understand the deal before they have to agree to it, and so far basically always decide it's a win-win. PG is not a lackey for some larger organization, and doesn't try to confuse young companies and trick/coerce them into signing bad deals.
By the time you get to the actual contract, the deal is a complicated 40-page mess that could very well be screwing the artists using a variety of different tricks. [2]
The YC teams can confirm or deny this, but from everything I've read, the terms are quite clear and straightforward. The basic exchange is funding and support for shares in the company, though there may be some relevant adjustments on an individual basis. Participants understand the deal before they have to agree to it, and so far basically always decide it's a win-win. PG is not a lackey for some larger organization, and doesn't try to confuse young companies and trick/coerce them into signing bad deals.
[1] http://negativland.com/albini.html - Semi-Rant about the situation from the guy who produced Nirvana's "In Uetero"
[2] http://www.music-law.com/contractbasics.html - Article about Music Contracts