With perpetual dual-class stock, founders and their families, and perhaps other key executives, get shares with voting power that gives them control over a company forever. Various versions of dual-class stocks have been around for a long time. But tech has taken the use of the dual-class stock organization to new heights. Some academic research touts the benefits of dual-class stocks — although just as many studies show the drawbacks over time. Here’s the problem with tech companies using dual-class stock schemes: They can work well until they do not.

Source: New York Times November 27, 2019 15:56 UTC