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Mon 17 May, 2004 08:14 am
Context:
But Google is also raising the ire of corporate governance advocates by issuing two classes of stock that give founders Larry Page and Sergey Brin, as well as CEO Eric Schmidt, super-voting shares worth 10 times the voting weight of an ordinary share.
Google's brass argue they don't want to be subjected to short-term, quarterly earnings pressures. (Related story: Company appears to be fiscally responsible)
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(1) Voting = ?
(2) weight = ?
(3) brass argue should actually be "brass argues"?
Every time Larry Page (and the others mentioned) votes, his "super-vote" counts as much as 10 ordinary votes... thus, it carries 10 times the "voting weight".
Americans would say "brass argues" but British writers would say "argue". The same for other group-type nouns like department or class. (American: The whole department is going to dinner as a reward for hard work. British: The department are going...)
Hi Wy, I just didn't get what is "super-voting share".
Brass = magnates?
Yep, brass = magnates, top officers, higer-ups in the company...
These guys (and many others) own shares in the company. These shares are what enables them to vote on issues that affect the company. If you and I owned equal shares in a company (each owning 50%), our votes would be equal. But, if my shares were "super-voting" shares like those described, my vote would be worth ten of yours, even if our investment in the company was the same.
So, if I owned 25% and you owned 75%, I could still decide the outcome of votes, as my votes would count for 250 and yours only for 75.
Clearer?
Yes, absolutely clear now.
Thank you Wy.
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