Some of their difficulties resulted from their controversial chief operating office, who resigned from the company very recently. He will be paid $1.7 billion in the ultimate of platinum parachutes.
Although he did not own a controlling number of shares in WeWork, he owned enough special shares that gave him that power nonetheless. And therein lies my pet peeve.
For most investors, for every share of stock you own, you have one vote in officer elections and elections for other matters. So if you own a thousand shares, you have a thousand votes.
Some companies, however, allow for a special class of shares, which have a lot more voting power. For instance, the Ford family does not own a majority of outstanding shares in Ford Motor Company, yet they have enough special shares with more voting power so that they nonetheless control the company.
That, I think, is wrong. All shares should be equal. You should only be able to control a company if you own a majority of shares or can form a majority with other shareholders.
Happy Halloween!































