Snap-Like Firms Should Report Investing Risks, Panel Tells SEC

By Andrea Vittorio

Companies like Snap Inc. that give public shareholders little to no voting power over executive pay and other issues should make clear the potential risks and benefits of owning their stock, according to an investor-focused panel that advises the Securities and Exchange Commission.

The panel of investment professionals, academics, and others said in a March 8 recommendation to the SEC that risk reporting is one of several disclosure gaps that need filling as these so-called dual-class share structures become a more common way to keep corporate control.

Its chair, Anne Sheehan, said it’s “not always clear” to ...