The fintech giant Wise is under fire as its co-founder, Kristo Käärmann, pushes for enhanced voting rights ahead of the company's highly anticipated US listing. Critics argue that the move undermines shareholder democracy and could set a dangerous precedent for corporate governance.
Controversial Power Grab
Käärmann's proposal would grant him and fellow co-founder Taavet Hinrikus disproportionate voting power, effectively sidelining other investors. This structure, often referred to as a 'dual-class share system,' has become increasingly contentious in the financial world.
Investor Backlash
Market analysts and institutional investors have voiced strong opposition, warning that such arrangements erode accountability. 'This isn't about founder vision - it's about entrenching power,' commented one leading asset manager who requested anonymity.
US Listing Concerns
The timing couldn't be worse, with Wise preparing for its New York debut. American markets have traditionally been more accepting of dual-class structures, but recent scandals have prompted calls for reform.
- Founders would retain 10 votes per share versus 1 for ordinary investors
- The structure would remain in place indefinitely
- Similar arrangements have backfired at other tech firms
Regulatory Scrutiny
UK regulators are monitoring the situation closely, with some suggesting intervention might be necessary. 'When companies list abroad, we can't ignore governance standards,' remarked a senior FCA official.
As the debate intensifies, Wise finds itself at the center of a growing storm that could impact not just its valuation but the broader fintech sector's reputation.
