Shareholder Democracy and the Challenge of Dual Class Share Structures

One share, one vote is a basic principle of shareholder democracy. It protects minority shareholder voices in markets with dispersed ownership. Multi-class share structures violate this principle. They give subsets of a company’s equity owners superior voting rights, so that their influence outweighs their economic interest. Our 2024 post-proxy season analysis shows that, for companies … Continue reading Shareholder Democracy and the Challenge of Dual Class Share Structures