https://www.recode.net/2017/6/13/15788892/alphabet-sharehold...
Larry and Sergey have special voting shares so its their company. In this case how much does the board really matter. Sergey and Larry can do what they want.
Larry and Sergey have special voting shares so its their company. In this case how much does the board really matter. Sergey and Larry can do what they want.
For example, they can threaten to dump their stock or not buy in anymore. Because of small daily volumes relative to market cap even small dumping can have huge price swings in stock. For public companies, their stock is literally a currency. They use it for acquisitions, hiring and so on. These investors can reject motions in board voting and usually always want to tighten screws for short term gains.
Now you should have more understanding on why Google was forced to hire people like Ruth Porat as CFOs and why she can cut down on so many projects for "more business focus" and increase "shareholder value". Owning majority voting shares are not that useful as they were hyped up to be.