Sen. Warren: Equal voting rights for all stock investors


Warren's letter comes in support of a push from the Council of Institutional Investors, which had been pushing back against efforts to adopt multi-tiered voting rights for public companies. While most companies assign one vote to one share of stock, a number of start-up companies are pushing for unequal voting rights, handing more control to company founders, their families, or other high-ranking officials within the company. 

Such an arrangement could reduce the sway held by institutional investors of common stock like nonprofit endowment funds, mutual funds, or government agencies investing as part of employee benefit plans, the council warned.

In her letter, Warren called on the exchanges to propose rules that would block new companies with unequal voting structures from being listed on the exchanges, and also would prevent already listed companies for adding extra classes to existing stock.