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Ahead of expected initial public offerings of major US technology companies, the Local Authority Pension Fund Forum restates its support for the principle of one share, one vote.
In the past, so-called ‘tech unicorns’ have often conducted IPOs on the basis of poor good corporate governance standards, making such investments more risky and misaligning economic exposure from control. The principle of ‘one share, one vote’ is brought into starker focus because of other governance concerns such as no plurality voting for unopposed directors; no simple majority voting; a lack of Board independence; and the dual role of chair and chief executive.
The Forum therefore calls on technology companies to do better than their predecessors and conduct their IPOS on the basis of one share, one vote.
Find the full report here.