T. Rowe Price Takes Stand Against Stock Structures That Create Unequal Shareholder Rights

Preserving control for founders is often cited as the reason for creating such multi-class stock structures as companies grow and the founders’ ownership or voting power becomes diluted. Plank called it a “founder-led approach.” But that leaves shareholders with unequal voting rights, say critics, who see such structures as founders seeking access to the capital of a public company while keeping the control of a private company.