3. The shareholder meeting that was over in a Snap
At two minutes and 46 seconds in duration, Snap’s first shareholder meeting yesterday was hardly a model for corporate governance, reports Axios' Kia Kokalitcheva, who diligently listened to the entire meeting.
During the meeting, Snap’s associate general counsel, Atul Porwal, had only one item on the agenda, which was to announce that co-founders Evan Spiegel and Bobby Murphy approved the election of Snap’s board members. And that's all that's needed, given the duo jointly own 96.4% of the voting power.
Where were the shareholders? According to Porwal, no shareholder questions were sent in, despite the fact that they could submit them via email, according to a July notice.
To be fair: Snap is part of a growing trend of companies forgoing the in-person meeting for a virtual one, a move proponents argue is more efficient and accessible for all shareholders.
Yes, but: In-person meetings historically have offered a rare opportunity for CEOs to be questioned on all manner of issues related to the company, from stock performance to ethics.
The bottom line: The choice to hold the short, audio-only meeting isn’t the best look for a company whose stock price has been on a decline since it went public in early 2017. That said, investors knew they were buying a stock in which they would have no direct say-so.