the investors have towards the company. With the current dual-class share structure, it is evident that the company’s Class-B shares have ten times more of the voting power as compared to the Class-A shares. Since Class-B shares are significantly controlled by the founder, Mark Zuckerberg, it is evident that he has voting power that is more than 50 percent despite the fact that he only owns 18 percent of Facebook. This is a demoralizing issue among the shareholder who turn out to have low level of voting power, which is instrumental in making viable decisions. Therefore, this is another issue that has significantly affected the good performance of Facebook.
Author’s Surname 3 6. Recommended changes As per the performance of the company’s IPO, there are significant measures that the management of Facebook needs to address with the objective of improving on its performance (Kiisel np.). The following are some of the recommended changes: a. Actively involve the technical team in addressing any form of technical hitches that are likely to occur in the system. b. Engage in the pre-evaluation process of its IPO for the purpose of ensuring that the selected market price per share is manageable and appropriate for the targeted market. c. Actively involve a team of market and financial analysts in establishing the foundation of its IPO so that it is accurately determined for the market.
Author’s Surname 4 Work Cited Kiisel, Ty. “Facebook’s IPO: Dealing with a failed project?” Forbes, 23 rd May 2012. Web. 13 th Dec. 2015.
- Spring '16
- Facebook Company, Facebook IPO Project