Elon Musk Reveals Why He Needs So Much Control of SpaceX
Massive voting control gives CEO Elon Musk the power to do what he wants with SpaceX, without worrying about a shareholder revolt.
Overview
One of the most controversial aspects of Space Exploration Technologies Corp (NASDAQ: SPCX), more commonly known as SpaceX, is the significant ownership and voting control held by CEO Elon Musk. With 42% ownership stake and more than 80% of the voting power, Musk doesn't have to worry about shareholders potentially removing him, even if they disagree with the company's performance. The power Musk yields with the company has been one of the more striking and controversial features of the stock.
For Musk, however, the reason for this type of structure is simple. He says it's to ensure that he can remain focused on the long term.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
Related Articles
- Can Palantir pull off a Microsoft-style comeback? Here's what options say
- Pfizer's Stock Has Been a Dud Over the Past 5 Years, but Is It Still Worth Buying for Its 6.9% Yield?
- All But 2 "Magnificent Seven" Stocks Are Underperforming the Market This Year. Here's 1 Company I'd Load Up On and 1 I'd Avoid