Seeing the challenges Thakar is facing at WPP Scangroup, it is easier to understand why founders at companies like Google and Facebook insisted on dual-class share structures.
—In a dual-class structure, public Class A shares typically carry one vote per share, while founder-held Class B shares can carry 10 votes or more per share. In extreme cases like Snap, some publicly traded shares have no voting rights at all.
—This allows founders to retain voting control even if they own a minority of the economic interest, protecting them from activist investors, hostile shareholder blocs, dilution, and short-term market pressure while they steer the business for the long term.
WPP Scangroup AGM: A concerned shareholder has asked the board and management why they have not taken remuneration cuts, given the company’s weak performance.
The shareholder questioned whether leadership pay remains justified when shareholders have endured poor returns.