Average Shareholders Likely Oppose Google Inc (GOOG)’s Dual-Class Voting Structure

It’s important to note, however, that Class A stock at Berkshire isn’t limited to insiders as it is at Google Inc (NASDAQ:GOOG). Buffett’s leadership, of course, serves as the exception rather than the rule, and his track record suggests that he can be trusted to do what’s in the best interests of shareholders. Call me crazy, but I’m guessing that a greater percentage of average outside shareholders would support Berkshire’s dual-class capital structure than the percentage of average outside shareholders supporting Google’s structure.

The Foolish takeaway
Because of the lopsided voting power among insiders and outsiders, it would have been surprising if the equal-voting-rights shareholder proposal passed. However, I believe management’s resistance to this change despite the high degree of average shareholder support should send a message to investors that insiders like Page, Brin, and Schmidt see Google Inc (NASDAQ:GOOG) as their company rather than the shareholders’ company. And this mentality is dangerous for investors.

The article Average Shareholders Likely Oppose Google’s Dual-Class Voting Structure originally appeared on Fool.com.

Motley Fool contributor M. Joy Hayes, Ph.D., is the Principal at ethics consulting firm Courageous Ethics. She owns shares of Berkshire Hathaway. Follow @JoyofEthics on Twitter. The Motley Fool recommends and owns shares of Berkshire Hathaway, Facebook, Google, and LinkedIn.

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