Nike has two classes of stock. Class A, which are not available on the open market and are convertible into class B shares on a 1-for-1 basis; and Class B, the normal Nike shares available to all investors.3 The primary difference is that holders of Class A shares elect 9 of the 12 members of Nike's board, while holders of Class B shares elect the other 3.
The co-founder of Nike, Phil Knight, and his son Travis Knight, along with the holding companies and trusts they control, own more than 97% of outstanding Class A shares.5 This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business.
Edited 3 time(s). Last edit at 12/04/2021 04:44PM by David Terry.
