THE LEX COLUMN: Dual class shares prove their mettle

Slack leads pack of companies at which executives wield the most voting power and still do extremely wellOffice chat app Slack’s direct market listing has proved the staying power of dual-class stock. The share may have dipped since opening at $38.50 but it trades at a premium to the top price paid in private markets.

Google introduced the idea in 2004. Its share price has risen from $85 to $1,115. Companies claim the set-up enables executives to focus on longer-term goals than fickle capital markets permit. But it can also rob shareholders of their voice. Sunset clauses that phase extra voting rights out over time are an obvious middle ground and are gaining traction. In 10 years, all outstanding Slack shares will convert to common stock without extraordinary votes.

Facebook CEO Mark Zuckerberg also owns shares that carry 10 votes but has about 60% of the overall voting power.

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