Let's be perfectly clear, given the ownership and board structure https://www.sec.gov/Archives/edgar/data/1418091/000119312522... , the CEO of Twitter is a figurehead.
replies(1):
1. What is the relevance of posting that years old 8-K about Twitter? The corporate structure is totally different now, with xAI having acquired X Corp in March.
2. Regardless of that, X is a private company with a hired CEO (by "hired CEO" I mean as opposed to a founder CEO or family CEO). There are tons and tons of companies like this, and most of them have active, traditional CEOs. The ownership and board structure of X isn't the thing that implies that the CEO is a figurehead - I'd argue Musk's megalomania is what does that.
The ownership and board structure serve as de facto evidence of control by Musk.
There really aren't any other companies (notably in the social media sector) that have this ownership structure. Hilariously enough, by board structure and stock ownership, Trump has less control over Truth Social.
- No. There are many companies that have board mandates such that one single entity can never have a prima facie super-majority of voting power.
- Yes it does. Under this structure, the CEO has no voting power on the board or right to initiate matters before it. Usually, a CEO has at least 1 vote and that right.
- Not true in corporations where there are distinct cohorts of stock classes such that the owners of (e.g. class "A") a particular stock have 10-100x more voting power than (e.g. class "B") and as a "price" to assume the role of CEO one must "purchase" a controlling majority of shares.