The Golden Share Makes a Dubious Comeback
The UK and the US have used special shares to inject the state into the governance of recent takeovers. More could follow. Takeover prices will suffer.
President Donald Trump speaks at the US Steel Corp. Irvin Works facility in West Mifflin, Pennsylvania, on Friday, May 30, 2025.
Photographer: Rebecca Droke/Bloomberg
If you thought golden shares were a relic of the 1980s, gone with mullets and perms, think again. These devices for subjecting companies to state control are back. Given the scope for abuse, it would be better if the power of these special shares was sufficient only to call them bronze.
Golden shares can be seen as a particular version of dual-class governance structures that allow company founders voting rights exceeding their economic shareholding in a company. The difference is that the disproportionate power is held by a government rather than an entrepreneur like Mark Zuckerberg at Meta Platforms Inc. Golden shares are mostly associated with the European privatizations late last century, like BAE Systems Plc, Rolls-Royce Plc and Royal KPN NV.