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Should Mark Zuckerberg Think Twice About Establishing A Dynasty? | TechCrunch

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“Facebook takes the founder-control trend to the extreme. By converting his shares into a class of super-voting stock at IPO, and designating Facebook as a ???controlled company,??? Zuckerberg will not only control 57.1% of the vote, but will also have the legal right to name 100% of the board of directors. He can also designate whomever he chooses as the successor to his corporate authority.

The unintended consequence of such absolute control may be the opposite of what Zuckerberg hopes. It isn???t a stretch to believe that he genuinely wants control in order to keep the business focused on the long-term social mission he described in his letter to shareholders, rather than the short-term gains often demanded by financial managers. What may happen instead is that the post-IPO business finds itself subject to whimsical decision-making and vulnerable to the inevitable securities lawsuits.”



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