1. Peloton Insiders will have 20 Votes Per Share — Twice as Many as Those at Other Startups — But CEO John Foley may not Wield all the Power after the IPO

    Peloton Insiders will have 20 Votes Per Share — Twice as Many as Those at Other Startups — But CEO John Foley may not Wield all the Power after the IPO
    • Like many startups that have gone public recently, Peloton will have a stock structure that gives extra votes to certain insiders.
    • Many companies with such arrangements give insiders 10 votes per share, but Peloton CEO John Foley and some early investors in the fitness firm will get 20 votes per share.
    • At least as things stand now, Foley wouldn't have majority control by himself, because he's not the biggest holder of super-voting shares...
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    1. This concentrated control will limit or preclude your ability to influence corporate matters for the foreseeable future.
    2. Whether it's 10 [votes] or 20, it's still a structure where your control is complete over the company without the same level of economic interest.
    3. That's their mantra, they won't stay.
    4. What happens if in five years you have a managerial disaster?
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