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Dual-Class Stock Lets Facebook Principals Maintain Control

Posted by Susan Hall Nov 25, 2009 11:25:58 AM

Privately held Facebook has created two classes to stock to ensure current owners retain control should the company eventually go public, reports Reuters. But it says the move doesn't necessarily mean it plans to go public. The story says Google did the same thing, though it eventually did go public.

 

With the new scheme, CEO Mark Zuckerberg and other current owners would have 10 times the voting power of other shareholders, reports bizjournals.com. The move is designed to prevent shareholders from forcing decisions for short-term gain over long-term direction of the company.

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