Dropbox’s IPO is just the Latest Case of Startup CEOs Consolidating Their Power — and Investors Should be Outraged
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- A growing number of tech companies are setting up stock arrangements that give outsized voting power to executives and founders — at the expense of regular shareholders.
- Dropbox, which on Friday released the paperwork it filed to go public, is the latest startup to go this route; the arrangement would give CEO Drew Houston nearly a quarter of the voting power at the company.
- Such stock structures insulate insiders from shareholder concerns, a privilege that executives and managers can abuse...