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Two Classes of Common Stock: Qui Bono?

Tuesday, Mar. 12, 2013

In light of the IPO's and subsequent performances of Facebook, Groupon, Zynga, etc., there has been renewed discussion in the Silicon Valley of whether having two classes of common stock, which places control of the Board in the hands of the founders and not the investors, benefits the investors or just entrenches management.

The Silicon Valley Directors' Exchange offers a panel on the question March 21.   Moderating will be Ethics Center Executive-in-Residence James Balassone.  Panelists are Andy Shapiro, founder and CEO of Lawndale Capital Management; Katie Martin, senior partner at Wilson Sonsini Goodrich & Rosati specializing in corporate and securities law; and Janice Hester Amey, a portfolio manager at CalSTRS in its corporate governance group.