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There are two sides to the coin, a good founder/CEO that has a controlling interest in the company can make long term strategic plans without fear of repercussions from short sighted investors.

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But you can be a good founder/CEO and have a controlling interest in the company without using multi-class shares if you simply retain the majority of shares.

Problems such as the one mentioned in this article start occurring when multi-class share schemes start allowing the founder to effectively sell off most of the company while still retaining total control.

Read the SEC commissioner's speech that I linked, seriously. He doesn't propose banning them entirely, just phasing them out over a period of time. Clearly there is a flipside to carte blanche founder control when the CEO/Founder is underperforming yet can't be removed (e.g. Evan Spiegel).

Do you think Mark Zuckerberg's children should retain majority control of Facebook after he dies?

Solution: Disallow inheritance of company shares.

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