Snap’s Spiegel Poised to Gain Sole Control After IPO

Snap’s IPO won’t just make CEO Evan Spiegel richer. It also will likely give him sole voting control of the company, according to an analysis of last week’s IPO filing.

That’s because the bonus that Mr. Spiegel will receive for taking the company public will be in the form of so-called supervoting shares, which carry more votes than other kinds of stock. The reward, which is worth hundreds of millions of dollars, would gradually increase Mr. Spiegel’s ownership and voting power over a period of three years, during which he would almost certainly cross the threshold of 50% voting power.

No subscription? You’re missing out.
Join the high-powered community of tech and business leaders who rely on The Information’s original news and in-depth reporting.
Subscribe to read the remaining 350 words of this article.
What’s included in a subscription?
Read The Information’s original, in-depth reporting and analysis
Receive as-they-happen articles via email
Talk with award-winning reporters in subscriber-only conference calls
Join the conversation on our subscriber-only Slack channel
Attend intimate, high-powered events with leaders in tech and business
Subscribe to The Information

The IPO bonus was first offered to Mr. Spiegel in July 2015 and required him to take the company public within six and a half years, according to Mr. Spiegel’s offer letter, which was attached in the filing.

Alfred Lee commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Mr. Spiegel could gain majority voting power faster, depending on when certain other shareholders sell stock.