FTSE Russell to Exclude Snap From Stock Indexes Over Voting Rights


The stock index provider said it made the decision based on client feedback, the latest sign of the growing importance of corporate governance rights to investors even as technology companies move to concentrate power with insiders.

It plans to require new constituents of its indexes to have at least 5 percent of their voting rights in the hands of public shareholders, though current constituents will be given a five-year grace period to comply.

It probably won’t change anything at Snap, but this may start to affect governance decisions for future private companies when they get ready to go public – especially if other index providers follow FTSE Russell’s lead.

(Related data on index + mutual fund ownership of US stocks: http://www.wsj.com/graphics/index-funds-taking-over-sp-500/)


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I work for True Ventures, an early-stage venture capital fund with offices in Northern Virginia, San Francisco and Palo Alto. We partner with promising entrepreneurs at the earliest stages in the technology market providing hands-on management support to guide our portfolio companies through the challenges of early growth. View all posts by adam →