Box investment group is a leading cloud content management and file sharing service provider founded in 2005. Over the past decade and a half, it has grown to serve over 100,000 businesses globally. As a publicly traded company, Box has raised over $500 million from investors and has a complex ownership structure. In this article, we will take a closer look at the founders, executives, major shareholders and other key stakeholders who own and control Box investment group.
Box’s founders Aaron Levie and Dylan Smith still maintain significant ownership stakes
Box was founded in 2005 by Aaron Levie and Dylan Smith who were just college students at the time. Levie serves as the CEO while Smith is the CFO. Despite taking Box public and selling some shares over the years, Levie and Smith still own sizable stakes in the company. As of 2022, Levie owns 4.1% of Box while Smith owns 6.7% of the common stock. This makes them the 2nd and 1st largest individual owners of Box investment group respectively. Having the founders involved in leadership and maintaining material ownership ensures that the company stays true to its vision and origins even after going public.
Starwood Capital is the largest institutional shareholder of Box investment group
While the founders hold significant individual stakes, institutional shareholders own the bulk of Box’s shares. The largest institutional shareholder is Starwood Capital Group, a private investment firm focused on real estate, energy, infrastructure and more. Starwood began investing in Box in 2008 and currently holds around 14% of the company. Having a long-term partner like Starwood has provided stability and credibility to Box as it has grown to an IPO and beyond. Other major institutional holders of Box include BlackRock, Vanguard Group, Meritech Capital Partners, ETF Managers Group LLC and more.
Box executives and board members also hold shares in Box investment group
In addition to the founders, Box’s executives and board of directors also own shares in the company. For instance, Chief Revenue Officer Chris Yeh owns over 150,000 shares while Chief Product Officer Jeetu Patel owns over 80,000 shares as of 2022. Board members like Dana Evan and Peter Leav also hold tens of thousands of shares each. While their stakes are smaller compared to the founders and major institutional shareholders, having skin in the game ensures alignment between shareholders, the board, and management.
Box repurchases its own shares through buyback programs
Beyond individual and institutional investors, Box investment group itself is also a shareholder in the company. As part of its shareholder return program, Box has been actively repurchasing its own shares on the open market. Since 2018, Box has bought back nearly $270 million worth of shares, reducing the share count considerably. Buybacks are an increasingly popular way for maturing tech companies like Box to return capital to remaining shareholders and support the stock price.
In summary, Box investment group has a complex ownership structure typical of a 15-year old public technology company. The founders own mid-single digit stakes each, institutions like Starwood own higher double-digit stakes, while executives and the company’s own buybacks make up the rest of the ownership pie. Maintaining founder involvement and alignment with major long-term shareholders provides stability and continuity to the strategic direction of Box.