Facebook whistleblower says she wants to fix company, not harm it

Re:Facebook whistleblower says she wants to fix company, not... by jsmith99 on Monday October 04, 2021 @01:56AM (#28743516)

The London Stock Exchange doesn't allow such dual class share structures for exactly this reason. That's partly why it has become so unpopular with tech companies.

They are considering changing the rule but many of London's brokers and institutional investors strongly oppose it.

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Re:Facebook whistleblower says she wants to fix company, not... by 1vuio0pswjnm7 on Monday October 04, 2021 @02:57AM (#28743892)

Tne NYSE used to restrict it. They relaxed the restrictions in the 1980's. Google was the company that started the trend in 2005. (Note they were sued by their shareholders and settled.) The percentage of companies using this type of structure was like 1% in 2005. By 2017 it was 22%. It is probably even higher today. It is used outside of Silicon Valley, too, but those non-tech companies have real products and services that produce revenue. They don't bait people with "free", spy on them and sell ads.

If I'm not mistaken there are some index funds that will exclude companies with dual class shares.

This is why "tech" companies can pursue outlandish projects that produce no revenue. Shareholders effectively have insufficient rights to question such decisions and hold the founders to account.

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