Blackwells Capital Activist Presentation Deck slide image

Blackwells Capital Activist Presentation Deck

■ ■ A DUAL-CLASS STRUCTURE LIMITS ACCOUNTABILITY TO SHAREHOLDERS The voting power of Peloton's insiders is vastly disproportionate to their economic interest in the Company Peloton maintains a dual-class voting structure, under which Class A shares represent one vote while Class B shares, which are controlled by insiders, represent twenty votes each As a result, Peloton insiders control more than 75% of the voting power, despite only having an economic interest in Peloton of approximately 12% Only 8% of companies in the S&P 500 have dual-class share structures with unequal voting Blackwells believes Mr. Foley's recent stock sales (possibly made under financial duress) may be creating a greater imbalance between insider voting power and economic interest ▪ This structure will continue to impair accountability to shareholders as long as it remains in place BW BLACKWELLS CAPITAL Economic Interest Voting Power Voting Power of Insiders vs. Economic Interest¹ 8% 0% 12% S&P 500 25% % of Companies with Dual-Class Shares with Unequal Voting² 12% 50% Nasdaq 100 75% 78% 13% Russell 1000 (1) Source: ISS Report, Peloton Interactive, Inc., November 23, 2021. "Insiders" based on ISS' definition of "Strategic Shareholders," which include John Foley, William Lynch, Thomas Cortese, Hisao Kushi and Jill Woodworth. (2) Source: FactSet. Data as of April 8, 2022. 100% 13
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