Originally published: April 12, 2012
Last updated: April 19, 2012 - 3:33pm
Google is pulling one of the stranger technical maneuvers the stock market has seen for quite some time. The company effectively wants to split its stock, giving current shareholders two shares for every share they own. Here's the twist: The new shares will hold no voting powers, essentially giving the company's founders -- CEO Larry Page, Chairman Eric Schmidt and co-founder Sergey Brin -- more say over time in the company's management decisions.
The company already has a dual-class share system, with the founders' stock holding 10 votes per share. That currently gives Google's power trio 66% of the voting power over the company's shares, according to a recent regulatory filing. In a letter to shareholders released April 12, the company's co-founders said they're concerned that day-to-day dilution from stock grants and acquisitions will undermine that structure.
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