Huang Renxun's management rights are fragile, but it is difficult for these big names to be "asked out"

NVIDIA has recently been involved in a scandal. Former CEO Jen-Hsun Huang resigned from the positions of president, CEO and director in one go, which is equivalent to a "naked resignation." The key to why founder Huang Jen-Hsun, who is regarded as the "godfather of AI," was so easily kicked out is Huida's "same shares, same rights" ownership structure. However, the founders of Meta and Alphabet (parent company of Google), which are also among the Magnificent Seven, designed a "same shares, different rights" management rights moat, so it is not so easy to be kicked out.

Apple, Microsoft, Amazon, Huida, etc. were all listed before the dot-com bubble in 2000. At that time, Wall Street and institutional investors were extremely resistant to "different rights for the same shares". Among the top five shareholders of Huida, BlackRock holds approximately 8%, Vanguard Group approximately 6.34%, Fidelity approximately 4.22%, and State Street Corporation approximately 4.16%, followed by the Huang Jen-Hsun family approximately 3.58%. Including supervisors and other employees holding shares, the total is only approximately 4%; even if they are reluctant to part with Huang Jen-Hsun, it is these institutional investors who have the final say!

Zuckerberg, the founder of Meta, and Page and Brin of Alphabet, designed a voting rights mechanism of "different rights for the same shares" when they went public. Taking Meta as an example, stocks are divided into A shares and B shares. Generally, the A shares traded by investors on the market are "one share, one vote", but the B shares held by Zuckerberg are "one share, ten votes." This allows him to hold less than 20% of the shares after selling shares many times to cash out, but he can control more than half of the voting rights.

The same is true for the two founders of Google. Even if they have long since handed over the CEO position and retired behind the scenes, with the super voting rights of B shares, no one can shake the company's fundamental decisions, and the board of directors cannot "invite them out" at all.

Tesla and Huida both have "same shares, same rights" structure, but Musk knows that equity is the right to speak. He has long maintained Tesla's key shareholding ratio of about 13% to 20% (plus option awards), and even publicly told the board of directors that if he could not obtain 25% of voting control, he would rather move the AI ​​business out of Tesla.

After experiencing the tug-of-war of Tesla having the same shares and equal rights, SpaceX, founded by Musk, learned to be smart and clearly designed a "same share with different rights" structure. Through special shares with super voting rights, Musk controlled nearly 78% of the voting control, completely binding the fate of SpaceX to his own will.