Do Public Benefit Corporations Live up to the Hype?

Susan Mac Cormac spoke to Financial Times about the public benefit corporations (PBC) model and how a sustainable food company is drawing attention to its PBC structure that it shares with AI companies. She discussed how as AI companies continue to grow, their PBC status will become crucial in potential mergers and acquisitions in the next 12 to 18 months.

“At some point there will be a question: When a PBC is being sold, their board can— and in many cases must — say no to a higher bid if they believe the acquirer with the higher price will not maintain the higher benefit,” Susan said. “One of these AI companies is going to be sold and that issue is going to come under the microscope. How do you evaluate whether your acquirer is going to maintain the public benefit?”

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