Actionable news
All posts from Actionable news
Actionable news in SNAP: Snap Inc,

FTSE Russell to exclude Snap from stock indexes over voting rights

The logo of messaging app Snapchat is seen at a booth at TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017.

Lucy Nicholson

BOSTON/SAN FRANCISCO (Reuters) - FTSE Russell said on Wednesday it planned to exclude Snap Inc (SNAP.N) from its widely followed stock indexes because the owner of the Snapchat messaging app has an unusual share structure that denies voting rights to investors.

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.

FTSE Russell Chief Executive Mark Makepeace told Reuters in an interview many of his clients had worried that Snap's structure could set a bad precedent.

"There were strong opinions that voting rights are an important issue. For shareholders to perform their function they have to be able to influence a company," he said...