This case affords students the opportunity to discuss stockholders’ equity issues in a unique and interesting format. The instruction of stock dividends is important; however, it typically is not very interesting. In the case of Wrigley, the stock dividend has a twist which allows discussion of corporate governance issues (including an international component), and stock price reaction topics, not only making the topic more interesting but also permitting the topic to be addressed in a way that goes beyond the mechanics.

This teaching case primarily involves the issue of corporate control via the use of a dual-class stock structure and the related issues of corporate governance. The use of super-voting shares held by management or founders allows them to control the company while putting up less than a majority of the equity.

 

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