Hyperloop to rein in major stakeholders amid charges of nepotism

San Francisco

ACCUSED by one of its founders of nepotism and greed, Hyperloop Technologies Inc, a startup dedicated to fulfilling Elon Musk's dream of high- speed transportation, is taking steps to rein in the power of its major stakeholders.

At a series of all-hands meetings in recent weeks, according to two people familiar with the situation, the company told employees it's changing the rules so that co-founder Shervin Pishevar and board member Joe Lonsdale each will control 20 per cent of voting shares, down from a combined 78 per cent. The two men decided to pare down their voting control to show goodwill towards employees, one of the people said.