Rick Alexander: On the Rise of PBCs in the AI Industry and Firm-Specific vs. Diversified Investor Duties

Rick Alexander is the CEO of Shareholder Commons, an independent, non-profit organization that addresses social and environmental issues from the perspective of shareholders who diversify their investments to optimize risk and return. He is also a leading expert in public benefit corporations. In this conversation, we explore the rise of PBCs and their growing role in new AI companies, particularly as venture capital pours into AI. We discuss OpenAI’s transition to a PBC, the implications of super majority voting structures, and the ongoing debate between staying private or going public. We also dive into the backlash against ESG initiatives, Delaware’s evolving corporate landscape, and the McRitchie vs. Zuckerberg case, which raises important questions about directors’ fiduciary duties. Throughout, we examine the balance between shareholder profit and broader societal impact, a crucial theme in today’s governance landscape. If you enjoy this episode, please subscribe, leave a review, or share it on social media. And don’t forget to stay updated by subscribing to the Boardroom Governance Newsletter at evanepstein.substack.com. This podcast is sponsored by the American College of Governance Counsel.