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Can anyone explain how the voting structure works? There's a "class F" of shares which are held only by Alex Karp, Stephen Cohen, and Peter Thiel, with each ow
by thesausageking 6y ago
Can anyone explain how the voting structure works?
There's a "class F" of shares which are held only by Alex Karp, Stephen Cohen, and Peter Thiel, with each owning 1/3. Class F has "voting power representing up to approximately 49.999999%".
Does that mean that basically Karp, Cohen, and Thiel have full voting control?
- _eigenfoo 6y agoYes. They're pretty explicit about this: > So long as our Founders [...] meet a minimum ownership threshold on the applicable record date for a vote of the stockholders[...], these Founders will effectively control all matters submitted to a vote of the stockholders for the foreseeable future. This could delay, defer, or prevent a change of control, merger, consolidation, or sale of all or substantially all of our assets that our other stockholders support. Conversely, this concentrated control could allow our Founders to consummate a transaction that our other stockholders do not support.
- thesausageking 6y agoThanks! I know many companies get away with it, but I still find it odd for shareholders to not have any control. They'll own it but have no say in how the company is run.
- wmf 6y agoMost investors are passive anyway. If you don't like how the company is run you can push down the price by selling.