Dual Class Share Companies

Samuel L. Hayes III; Lynn S. Paine; Christopher  Bruner

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Background Note | HBS Case Collection | August 2005

Dual Class Share Companies

by Samuel L. Hayes III, Lynn S. Paine and Christopher Bruner

Abstract

Provides a brief historical overview of dual class share companies in the United States, focusing on the New York Stock Exchange's evolving position on dual class structures since the 1920s, the impact of hostile takeovers on their use since the 1980s, and recent perspectives on their utility and appropriateness. Concludes with a brief discussion of the role of dual class structures in recent debates over Europe's takeover laws.

Keywords: Acquisition; Debates; Capital Structure; Equity; Business History; Law; Organizational Structure; Business and Shareholder Relations; Perspective; Europe; United States;

Format: Print

10 pages

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Citation:

Hayes, Samuel L., III, Lynn S. Paine, and Christopher Bruner. "Dual Class Share Companies." Harvard Business School Background Note 306-032, August 2005.

About the Authors

Samuel L. Hayes

Jacob H. Schiff Professor of Investment Banking, Emeritus

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Lynn S. Paine

Baker Foundation Professor, John G. McLean Professor of Business Administration, Emerita
Senior Associate Dean for International Development

General Management

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Article | Harvard Business Review Digital Articles | October 6, 2020

COVID-19 Is Rewriting the Rules of Corporate Governance

Lynn S. Paine

Boards are facing a complex new reality as a result of COVID-19. The new environment is characterized by pressures and demands from various stakeholder groups, heightened expectations for societal engagement and corporate citizenship, and radical uncertainty about the future. These factors are complicating board decision-making and challenging the shareholder-centric model of governance that has guided boards and business leaders for the past several decades. A board’s ability to deliberate in a thorough and thoughtful, but efficient, manner and come to a considered conclusion around key issues will be a critical aspect of its effectiveness in the post-COVID era.

Keywords: Health Pandemics; Corporate Governance; Governing and Advisory Boards;

Citation:
Paine, Lynn S. "COVID-19 Is Rewriting the Rules of Corporate Governance." Harvard Business Review Digital Articles (October 6, 2020). View Details

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Article | Harvard Business Review Digital Articles | October 6, 2020

Test Your Board's Readiness for the Post-COVID Era

Lynn S. Paine

Research suggests that well-run boards take the process of self-evaluation quite seriously, often using a combination of director surveys and personal interviews to assess the functioning and effectiveness of the board, its committees, and its individual members. As boards prepare for their next round of self-evaluation, they will want to assess their capabilities and readiness to govern in the wake of COVID-19. This list offers a guide to the kinds of key questions and statements they should consider adding to their surveys or interview protocols.

Keywords: Health Pandemics; Governing and Advisory Boards; Performance Evaluation;

Citation:
Paine, Lynn S. "Test Your Board's Readiness for the Post-COVID Era." Harvard Business Review Digital Articles (October 6, 2020). View Details

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Case | HBS Case Collection | October 2017 (Revised August 2020)

RB

Joshua Margolis, Vincent Dessain and Jerome Lenhardt

As 2016 was approaching its end, Rakesh Kapoor, CEO of RB, one of the world’s major fast moving consumer goods (FMCG) companies, envisioned the prospect of a major acquisition that would add a line of health-related products that promised growth in the developing markets of Asia. The acquisition would also move RB closer in size to its better-known rivals, such as Unilever or P&G. RB, formerly Reckitt Benckiser, produced health, hygiene and home products and its strategy revolved around 19 top-selling global brands known as Powerbrands, such as antiseptic Dettol or sore throat medicine Strepsils, and cold remedy Mucinex. In 2016, the company recorded sales of $13.4 billion and a market capitalization of $62 billion. Kapoor wondered whether the moment was ripe for a major acquisition or if the organization needed more time to adapt to its new health and hygiene oriented strategy and some key organizational changes. Could Kapoor keep what made RB so unique among its FMCG peers intact through this transformation, and would an acquisition advance or jeopardize what distinguished RB?

Keywords: Organization Behavior; corporate culture; Mergers ＆ Acquisitions; Growth; geographic development; Mergers and Acquisitions; Organizational Change and Adaptation; Organizational Culture; Growth and Development Strategy; France;

Citation:
Margolis, Joshua, Vincent Dessain, and Jerome Lenhardt. "RB." Harvard Business School Case 418-033, October 2017. (Revised August 2020.) View Details

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Dual Class Share Companies

Abstract

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