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UPS Partners
2013 Proxy Proposal 4 - Reduction of Voting Power of Class A Shares
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<blockquote data-quote="pretzel_man" data-source="post: 1114554" data-attributes="member: 927"><p>When UPS went public, A shares were given voting power of ten times that of B shares. Since A shares generally are only given to or purchased by UPS employees, this kept control of the company in the hands of company employees.</p><p></p><p>Last I looked, less than 40% of the outstanding shares are A shares. Even though the majority of the shares are B shares their votes remain in the minority.</p><p></p><p>Imagine a room with 100 people in it. 60 vote one way and 40 vote the other. Rather than the vote being 60 / 40, the minority side says we get 10 votes each. So the vote ends up 60 to 400.</p><p></p><p>As I recall, this was to keep a hostile takeover from happening....</p><p></p><p>Pros and cons? I guess that if the rules changed we would be accountable even more to shareowners than today.... Is this bad? I don't know.</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 1114554, member: 927"] When UPS went public, A shares were given voting power of ten times that of B shares. Since A shares generally are only given to or purchased by UPS employees, this kept control of the company in the hands of company employees. Last I looked, less than 40% of the outstanding shares are A shares. Even though the majority of the shares are B shares their votes remain in the minority. Imagine a room with 100 people in it. 60 vote one way and 40 vote the other. Rather than the vote being 60 / 40, the minority side says we get 10 votes each. So the vote ends up 60 to 400. As I recall, this was to keep a hostile takeover from happening.... Pros and cons? I guess that if the rules changed we would be accountable even more to shareowners than today.... Is this bad? I don't know. [/QUOTE]
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2013 Proxy Proposal 4 - Reduction of Voting Power of Class A Shares
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