http://www.mikecritelli.com/2012/08/11/challenges-delivering-shareholder/ Mike Critelli's Blog Sun, 12 May 2013 21:56:27 +0000 hourly 1 http://wordpress.org/?v=3.5.1 http://www.mikecritelli.com/2012/08/11/challenges-delivering-shareholder/comment-page-1/#comment-6396 Mike Critelli Sun, 12 Aug 2012 21:34:20 +0000 http://www.mikecritelli.com/?p=872#comment-6396 I have heard of these variations, and they work in certain situations. However, there is no perfect solution, since each change solves some problems and creates others.

]]> http://www.mikecritelli.com/2012/08/11/challenges-delivering-shareholder/comment-page-1/#comment-6395 Bill Kay Sun, 12 Aug 2012 20:50:35 +0000 http://www.mikecritelli.com/?p=872#comment-6395 Have you heard of the A and B share concept which was so prevalent at one time in the UK? Or even voting and non-voting stock, which has been used by families to retain control of companies in which they actually have a minority interest? Both strategies were widely criticized and are much rarer than before. But they are precisely what would happen under your imaginative plan to give additional voting rights to long-term shareholders. After all, who are the longest-term shareholders but a company’s founders? New blood might come in, say a VC or PE investor, with proposals to shake-up the management and its policies – only to find they are thwarted because the board and their families have long-term voting bonuses. Result: sclerosis.

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