Square Shares Pop on Point72 Asset Management Investment

Shares of mobile-payment firm Square (SQ) - Get Report  ticked higher on Friday after hedge fund Point72 Asset Management, a successor to Steven A. Cohen's Connecticut-based S.A.C. Capital Advisors, unveiled a 5.4% stake in the company, making it the firm's third-largest equity holder. As Real Money reported, shareholder advisory firms have recently raised red flags that Square's board's incentive structure could lack transparency and may even dissuade suitors from making takeover offers. According to shareholder advisory firm Glass Lewis, three of Square's top 10 shareholders have seats in the corporate boardroom. CEO and co-founder Jack Dorsey owns about 21% of the company's outstanding shares, while Square's fellow co-founder James McKelvey Jr. holds about 8%, and Silicon Valley venture capitalist Mary Meeker holds more than 2%. Meanwhile, Vinod Khosla, whose Khosla Ventures holds a 15% stake in Square. (Khosla is a former board member and current adviser to the board.)

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