July 30, 2007
With Great Power Comes...
James Fallows on two-tiered stock structure in media ownership:
The only justification for “Class B” shares giving special voting power to the Sulzberger family at the Times, the Graham family at the Post, and the Bancroft family at the Journal is the assumption that the families will weigh other factors in deciding how the news operation should be run.
That is: other potentially non-economic factors.
Of course, Class B shares aren’t just an old-school thing. Guess which other company uses them to give super-votes — and, potentially, the power to defy the market — to founders and top executives?