The US index will exclude new IPOs from their indices, where companies fail to offer investors voting rights. The move follows FTSE Russell’s decision to limit access after the controversial Snap IPO.
Companies with multiple share class structures will be barred from inclusion in major stock indices, over concern that they treat shareholders "unequally". The US-based S&P Composite 1500 and its component indices will no longer accept companies with different classes of shares. It will, effectively, bar the recently floated Snap from entering these indices, though existing constituents will not be affected. Snap’s multi-billion-dollar March IPO saw it offer new investors a class of stock with no voting rights. S&P Dow Jones said companies with multiple share class structures "tend to have corporate governance structures that treat different shareholder classes unequally" with respect to voting rights "and governance issu