Chillin' out till it needs to be funded
Stephen Hester ( did I say anyone else?) of course made the remark about honor and self esteem not being enough when you are running RBS, allowed to express his disgust on the ongoing brouhaha over his pay. Apparently he could have quit in the middle of his first interview.
You would have thought there will be a general body of people by now where clawbacks have been actioned at UBS and jefferies for the bonuses already paid out, clawbacks definitely not a shot int he arm for your self image esp if you have already spent that and the house you bought not worth the penny claim from the bank.
More importantly, Facebook has been paying off the Class B holders
Facebook, however, has a different way of expressing voting control and one presumes honor and self esteem too. The Mark Zuckerberg 28.7% supposed to be his voting power based on Class B holdings has unraveled again, the 52% voting power of Mark Zuckerberg being based on 50% of the shares being class B. How this happens is that Facebook has been paying off the other Class B stock holders and that would be another 21.3% to sign voting agreements and otherwise turn over voting on the shares to him, giving him much more than 52-3% control to 91% in case Zuckerberg has indeed managed it so he owns voting on the entire 50% Class B issuance. For some reason, the special agreements mention a consideration for the value of the contract at $100
The 28.7% of Class B stock is what he owns truly, giving him only 36.1% voting power and the rest 26% in voting power is from the 28.4% Class B stock of other investors that he has control thru voting agreements. one can see why Calsters would be iffy about the deal but one should realise that underlying this story is the innovator’s power over his model and the inability to pay for its expansion innovatively patched up by venture capital, private equity and in Mark Zuckerberg’s case, even family.