Snap Inc. has already upset potential investors.
The parent company of Snapchat, which filed for flotation on the stock market on Thursday, is offering public shares with no voting power and potential investors have "reacted with fury," The Financial Times reports.
With no voting rights, investors won't have any say in the running of the company, leaving total control to two of the company's founders — Evan Spiegel and Robert Murphy — even if one or both of them were fired by the board of directors.
It will be the first US IPO to issue shares with no votes at all.
In response, several of the largest US pension funds will send a public letter to Snap, The Financial Times says, and they have until Friday to sign the letter of objection.
The filing (which you can read in full here) says that Snap Inc. has three classes of common stock, Class A, Class B, and Class C, but the public shares it's offering will be Class A — the only class without voting rights.
Spiegel and Murphy own all three types of stock, and if either Spiegel or Murphy die, nine months later, the remaining cofounder would be able to "exercise voting control over our outstanding capital stock, " i.e. their control is going to last for a very long time.
Mark Zuckerberg similarly had special shares in Facebook which gave him major voting control, but in June 2016 the company changed its rules so that he will lose control if he ever left the company.
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