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Snap Shares Dropped From S&P 500 on Concern Over Voting Rights

Snap Inc. (SNAP) shares will no longer be included on the S&P 500 benchmark, the index provider said Tuesday as it moves to exclude listings that don't provide voting rights to investors.

The move will take effect Tuesday Aug. 1, S&P Dow Jones Indices LLC said in a statement, although existing companies in S&P indices will be "grandfathered" in, meaning listing such as Warren Buffett's Berkshire Hathaway Inc. will not be affected by the rule changes. The decision follows a similar judgement last week from FTSE Russell, a division of the London Stock Exchange Group, which dropped Snap shares from its indices following a consultation with its clients.

"Companies with multiple share class structures tend to have corporate governance structures that treat different shareholder classes unequally with respect to voting rights and other governance issues," S&P Dow Jones Indices LLC said in a statement. "Therefore, S&P DJI's U.S. Index Committee will no longer consider these company structure types as future replacement candidates for the S&P Composite 1500 and its component indices, including the S&P 500."

Snap Inc, which owns the...