ISS reported on trends in dual/multi-class share structures and sunset provisions for the S&P 1500 and Russell 3000 (excluding the S&P 1500) for the period 2015 – 2022. Generally, the percentage of S&P 500, S&P 400, and S&P 600 companies with an unequal voting rights structure has remained flat, whereas the percentage of Russell 3000 companies (excluding the S&P 1500) with an unequal voting rights structure has increased, particularly since 2020, which ISS attributes largely to new IPO companies and SPACs.
The percentage of companies with sunset provisions in all tracked indices over that time period has increased (although not linearly), particularly in Russell 3000 companies (excluding the S&P 1500). In most cases, for those companies that have them, sunset provisions are triggered based on an indeterminate event or more than seven years after the IPO.
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