How and Why Founders Became Tyrants? #Mark_zuckerberg #Elon_musk

I’m sure you’ve heard about some of the most famous CEOs and visionaries of all time being fired from their own companies. This includes everyone from Steve Jobs and Elon Musk to Travis Kalanick and Jerry Yang. While this understandably leaves founders feeling betrayed, it’s often the right choice as the founders have simply gotten out of line. In many modern companies, however, firing CEOs is simply not possible even if they don’t own a majority stake in the company. This is thanks to something called multi-class stock. Essentially, multi-class stock gives certain shareholders more voting power than others. Founders and early investors brilliantly use this structure to retain more than 50% voting power despite only owning 10 or 15% of the company. Likely the two most notable companies leveraging this strategy are Google and Facebook but they’re by no means the only ones. Most modern tech startups leverage this strategy and even legacy companies are jumping on board. This video explains how founders and CEOs are using multi-class stock to rule companies like tyrants
How and Why Founders Became Tyrants? #Mark_zuckerberg #Elon_musk