Multi-class stock structures were double teamed on Tuesday with two groups attacking them from different angles—that shareholders not only suffer from a lack of control, they also face diminished returns over time.
Coming at the issue from a shareholder advocacy angle, the Council of Institutional Investors (CII)—a non-profit association of pension funds, foundations and endowments —launched a campaign to urge the New York Stock Exchange and Nasdaq to make new companies that have two or more classes of common stock with unequal voting rights ineligible for listing. Letters were delivered to both exchanges on Tuesday morning.
