I didn’t. It evidently works—as do cooperatives, which I was also excited to found—but I think the big worry is up the top end. It’s very hard to imagine a FAANG company structured this way. And some of the average-case calculations above are skewed upwards by a handful of top success stories.
At Google, Larry Page and Sergey Brin control 51% of the shareholder vote thanks to their supervoting stock.
At Meta/Facebook, Zuckerberg controls 61% of the vote.
Anthropic is a public benefit corporation.
OpenAI was supposed to be controlled by a nonprofit board though Sam Altman is trying to convert it into a public benefit corporation.
Shareholders are also unlikely to remove Elon Musk from Tesla even if he does a lot of things against Tesla’s interests.
Executives are under intense pressure to make profit to prevent the business from going bankrupt, and maybe to get bonuses or reputation, but the pressure to avoid getting voted out by shareholders is relatively less.
Charities have a lot of the same pressures (minus the bonuses).
I don’t have any expertise, I may be totally wrong.
I didn’t. It evidently works—as do cooperatives, which I was also excited to found—but I think the big worry is up the top end. It’s very hard to imagine a FAANG company structured this way. And some of the average-case calculations above are skewed upwards by a handful of top success stories.
At Google, Larry Page and Sergey Brin control 51% of the shareholder vote thanks to their supervoting stock.
At Meta/Facebook, Zuckerberg controls 61% of the vote.
Anthropic is a public benefit corporation.
OpenAI was supposed to be controlled by a nonprofit board though Sam Altman is trying to convert it into a public benefit corporation.
Shareholders are also unlikely to remove Elon Musk from Tesla even if he does a lot of things against Tesla’s interests.
Executives are under intense pressure to make profit to prevent the business from going bankrupt, and maybe to get bonuses or reputation, but the pressure to avoid getting voted out by shareholders is relatively less.
Charities have a lot of the same pressures (minus the bonuses).
I don’t have any expertise, I may be totally wrong.