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I don’t know exactly how the CEO got kicked out but I know that Zuckerberg owns just about 13% of Meta and not only they cannot replace him but he still have su
by redbell 3y ago
I don’t know exactly how the CEO got kicked out but I know that Zuckerberg owns just about 13% of Meta and not only they cannot replace him but he still have superior power in decision making over the board of directors.
- wongarsu 3y agoZuckerberg (and a small group of other Meta shareholders) hold shares that have 10x as much voting power as normal shares. He has about 90% of those special shares, giving him a solid majority in most matters. Some other companies like Lyft or Alphabet have similar structures, but it is very unusual.
- Spivak 3y agoI'm actually surprised it's not more common. If I buy meta stock I have zero expectation of being able to sway company decisions. I just care that if they make money I make money.
- blibble 3y agoit's not more common because the index providers cottoned on and now it's banned if you want to be in the index and rightfully so
- hgsgm 3y agoSo why by stock and not a bond?
- JohnFen 3y agoA bond is just a loan that is repayed with a fixed return. A stock is equity and can be worth a lot more. Stocks are riskier than bonds, but have a greater profit potential. Which you prefer depends entirely on what your investment goal is.
- sbierwagen 3y agoThe NYSE and S&P 500 banned dual class stocks for several decades: https://www.investopedia.com/terms/d/dualclassstock.asp https://www.investopedia.com/terms/d/dualclassstock.asp During periods when VCs have more leverage they'll lean on founders to not issue dual class stocks, since of course it reduces their power to fire CEOs when things aren't going well.
- johngladtj 3y agoHow do you expect to make money with zero control?
- JumpCrisscross 3y ago> How do you expect to make money with zero control? The way most Facebook shareholders have.