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From what I hear that's not the case the with Zuckerberg, in that most decisions go through him. I would guess the same with Elon

r00fus 5y ago
That's because Zuckerberg stacked the decks that way because he pressed his advantage early. He owns controlling interest of his operation and it can't be wrested from him. I don't think it's the best approach to manage a company but it's sure been lucrative for Mark.
- BbzzbB 5y ago
  >it's sure been lucrative for Mark I don't hear many FB shareholders complaining either, I wouldn't claim equal voting rights on my few shares even if I could (please don't crucify me HN, I'm just a tiny fish that dislikes the company but likes the stock). On paper, supershare structures are not a great thing for the common shareholder as it makes their shares basically free of voting rights when the CEO (or united group) holds such a supermajority. In practice, a strong operator like Mark gets more leeway to steer the ship with fewer barriers and inside power struggles. Imagine if the board stopped him from buying IG or WA, these purchases were very controversial at the time and many thought he was a lunatic for paying such a steep price, it only looks genius in hindsight. When/while it works, it is an effective governance structure. Notable that these types of structures are no longer allowed, companies like Facebook, Google and Berkshire (no super-majority here) got grandfathered in.
  - Pius_IX 5y ago
    > Notable that these types of structures are no longer allowed, companies like Facebook, Google and Berkshire (no super-majority here) got grandfathered in. Could you maybe elaborate on that? I have never heard about this before, what exactly isn't possible these days?
    - BbzzbB 5y ago
      Am I misremembering? I vividly recall finding information with regards to this type of structure not being allowed (unsure if regulatory or stock exchange level) with these examples (Mark's majority, Page+Brin's majority, BRK A shares) last time I came across this, but now I come up empty-handed. So I'm unsure and don't have much time to dig in, maybe someone more knowledgeable comes by. Feels bad that I can't edit in a disclaimer to my previous comment, I don't want to parrot misinformation.
nicce 5y ago
Zuckerberg owns too much from the company. Elon is the public figure of his companies and firing him crashes the stock.

r00fus 5y ago

That's because Zuckerberg stacked the decks that way because he pressed his advantage early. He owns controlling interest of his operation and it can't be wrested from him. I don't think it's the best approach to manage a company but it's sure been lucrative for Mark.

BbzzbB 5y ago
>it's sure been lucrative for Mark I don't hear many FB shareholders complaining either, I wouldn't claim equal voting rights on my few shares even if I could (please don't crucify me HN, I'm just a tiny fish that dislikes the company but likes the stock). On paper, supershare structures are not a great thing for the common shareholder as it makes their shares basically free of voting rights when the CEO (or united group) holds such a supermajority. In practice, a strong operator like Mark gets more leeway to steer the ship with fewer barriers and inside power struggles. Imagine if the board stopped him from buying IG or WA, these purchases were very controversial at the time and many thought he was a lunatic for paying such a steep price, it only looks genius in hindsight. When/while it works, it is an effective governance structure. Notable that these types of structures are no longer allowed, companies like Facebook, Google and Berkshire (no super-majority here) got grandfathered in.
- Pius_IX 5y ago
  > Notable that these types of structures are no longer allowed, companies like Facebook, Google and Berkshire (no super-majority here) got grandfathered in. Could you maybe elaborate on that? I have never heard about this before, what exactly isn't possible these days?
  - BbzzbB 5y ago
    Am I misremembering? I vividly recall finding information with regards to this type of structure not being allowed (unsure if regulatory or stock exchange level) with these examples (Mark's majority, Page+Brin's majority, BRK A shares) last time I came across this, but now I come up empty-handed. So I'm unsure and don't have much time to dig in, maybe someone more knowledgeable comes by. Feels bad that I can't edit in a disclaimer to my previous comment, I don't want to parrot misinformation.

nicce 5y ago

Zuckerberg owns too much from the company. Elon is the public figure of his companies and firing him crashes the stock.