CEO Jack Dorsey’s lineup of heavy hitters on Square (SQ) ‘s board may be eye-catching, but it may cost shareholders some lucrative opportunities, analysts say.
With a 10 rating, Square has the highest corporate governance risk possible on the Institutional Shareholder Services’ rating scale, based on an August report. According to the report, the San Francisco-based mobile payment company is particularly lacking in categories including takeover defenses and meeting- and voting-related issues, and it has an unfavorable use of equity compensation. The more general criteria, “board practices,” also clocked in at the bottom of the ISS scale.
