Yelp CEO Jeremy Stoppelman, his investors and director Max Levchin own a collective 86 per cent of the company — leaving only a small portion of ownership to its employees.
The employee with the next largest share is chief operating officer Geoff Donaker, who owns 1.6 per cent of the company, according to the company’s S-1 filing with the Securities and Exchange Commission. Everyone else, including his executive staff, own less than 1 per cent of the company.
Yelp has not issued any Class A stock, which means all stock it has issued has the same amount of voting power. Class B shares have 10 votes while Class A shares only have one vote.
Stoppelman owns 11.1 per cent of the company while Levchin owns 13.8 per cent. Investment firms Bessemer Venture Partners, Elevation Partners and Benchmark Capital collectively own 61.1 per cent of the company.
Zynga’s CEO and his investors, for example, only own 50.9 per cent of the company (CEO Mark Pincus still owns 10.7 per cent). Groupon CEO Andrew Mason owns 7.7 per cent of his company and he, along with top executives and investors, own 62.5 per cent of the company.