Hyperloop Founder, Accused of Nepotism, To Cede Voting Power
- Special board meeting to discuss proposal by month’s end
- Lawsuit alleges management is lining relatives’ pockets
Hyperloop One Test and Safety site in the Nevada desert, on May 11, 2016.
Photographer: David Becker/Getty ImagesThis article is for subscribers only.
Accused by one of its founders of nepotism and greed, Hyperloop Technologies Inc., a startup dedicated to fulfilling Elon Musk’s dream of high-speed transportation, is taking steps to rein in the power of its major stakeholders.
At a series of all-hands meetings in recent weeks, according to two people familiar with the situation, the company told employees it’s changing the rules so that co-founder Shervin Pishevar and board member Joe Lonsdale each will control 20 percent of voting shares, down from a combined 78 percent. The two men decided to pare down their voting control to show goodwill toward employees, one of the people said.