Snap's decision to sell only non-voting shares in its IPO raises serious concerns about who will hold top execs accountable for human resources violations, said Vivek Wadhwa, an adjunct professor at Carnegie Mellon University and a director of research at Duke University, Tuesday's on "Power Lunch."
"We want to hold them accountable, yet they are hijacking the stock right from day one," said Wadhwa. "We want to be able to fire these people as soon as they trip up, which they will before you know it."
The skills required to run Snap as public company are very different to those required to build a cool app, he said. Snap CEO Evan Spiegel sent a series of embarrassing and sexist emails while a frat boy at Stanford, which were partly published by Gawker in 2014.
"We've got a bunch of kids who were accused of misogyny, sexism — if you look at the female scandal of two and a half years ago — we were disgusted at the company," he said.
The degree to which Snap is locking up control of the company with its founders is seen as unprecedented, even among tech companies like Alphabet's Google, Facebook and Twitter, which also structured voting power to favor the founders.
"These people now want to take billions of dollars from the public markets and say 'leave us alone,' we want ownership for life," he said. "This is wrong."
The boys' club culture of Silicon Valley is once again in the spotlight after a Sunday blog post from former Uber engineer Susan Fowler alleging that the company's human resources team ignored repeated reports of sexual harassment and sexism. Uber is now investigating Fowler's claims.
"Outrageous, the company is rotten to the core, that's what we learnt," said Wadhwa about Uber.