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- Dual-class structures give executives greater voting rights over public shareholders
- U.S. tech companies have increasingly adopted this structure since the mid 2010s
More U.S. Tech Companies are Adopting Unequal Voting Structures
Shareholders of public companies often receive the right to vote on corporate policies like issuing dividends or initiating mergers.
Some companies opt for a dual-class share structure, where one class is offered to the public, and another is reserved for founders and executives. Many argue that this weakens accountability, as executives can simply overrule the wishes of outside investors.
The following table lists the number of U.S. companies that have IPO’d with a dual-class share structure. This data was compiled by Jay R. Ritter, Cordell Professor of Finance at the University of Florida.
|Year||Non-tech IPOs||% of Dual Class|
|Tech IPOs||% of Dual Class|