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How difficult would it be for a startup to create two stock classes, where one has outsized voting rights? Then the monetary value could be spread more evenly
by kzhahou 11y ago
How difficult would it be for a startup to create two stock classes, where one has outsized voting rights? Then the monetary value could be spread more evenly to non-founders (i.e., not a 50-to-1 ratio between founders and employee #1), while the founder and investors maintain voting power.
- poof131 11y agoI believe it’s very possible, just not standard. A number of companies have adopted such measures to great effect for the founders to maintain power over investors [1], but not many have used similar legal tools in reverse to help spread the upside with earlier employees as suggested in the first comment. Perhaps the standard should be for founders to get ‘super-voting’ shares and use some of the power to distribute better upside distribution. Sell it in both directions, longer term stability and more employee alignment. [1] http://www.businessinsider.com/googles-co-founders-are-going-to-sell-44-billion-worth-of-shares-2015-2 http://www.businessinsider.com/googles-co-founders-are-going...