SEC Official Slams Dual-Class Shares Used by Alphabet, Snap

  • Permanent dual shares akin to corporate royalty, Jackson says
  • Dual-share classes should eventually lapse, commissioner says

Photographer: Joshua Roberts/Bloomberg

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Alphabet Inc., Snap Inc. and Facebook Inc. all have dual-share classes -- a practice that has drawn criticism from investor advocates who say it can allow insiders to control companies for decades.

Now a top official at the U.S. Securities and Exchange Commission wants to prevent the next generation of tech powerhouses from following suit.