As Lyft Inc. prepares for its first annual shareholder meeting as a public company, CtW Investment Group is urging fellow shareholders to oppose the re-election of co-founder Logan Green and another board member in protest over the company's dual-class share structure.
CtW Investment Group works with pension funds sponsored by unions affiliated with Change to Win, a federation of unions representing $250 billion in assets under management, including Lyft shares.
In a letter to Lyft shareholders Friday, CtW Investment Group Executive Director Dieter Waizenegger said: "Lyft has failed to provide a governance framework that holds its board accountable to all of its shareholders. Lyft's decision to adopt a dual-class share structure, with no reasonable sunset period, not only creates a misalignment of control and economic exposure between its public shareholders and co-founders but makes it almost impossible for investors to voice disapproval of the company's leadership. In addition, the company's classified board structure prevents long-term investors from effectively voicing their concerns with the company's board during a critical time in Lyft's growth."
CtW Investment Group is calling on shareholders to withhold votes at Lyft's June 19 annual meeting for Mr. Green's re-election and board member Ann Miura-Ko, the only director up for re-election.
In the letter to shareholders, CtW Investment Group said that the ride-hailing company's performance problems since its initial public offering last year demonstrates the need for a board accountable to all its shareholders, and that current dual-class structure creates a misalignment with public shareholders who are economically exposed, with Mr. Green and co-founder John Zimmer owning 3.66% of the stock but controlling 37.47% of the voting power.
