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  "documentTitle": "Goosehead Insurance, Inc. (GSHD)",
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  "authorName": "Wolfpack Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-16 00:00:00",
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  "notes": "The slide uses a strong, accusatory tone to frame the management team as extracting value through structural mechanisms.",
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      "text": "GSHD’s shareholders took on debt, held by the company, and more than half of the proceeds went into the pockets of the CEO and the other pre-IPO holders.",
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      "text": "The board is essentially powerless to reign in C-Suite because the Stockholders Agreement prevents them from removing key members without authorization by the majority holders of the Class B shares, which are Mark Jones, the CEO and Chairman of the Board, and his wife Robyn, the Vice Chairman of the Board, who beneficially own 89%. This allows them to shield members of the C-Suite, like their son, Mark Jones Jr., the CFO, and their son-in-law, P. Ryan Langston, who is GSHD's VP and Chief Legal Officer.",
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      "text": "Since its IPO, GSHD has paid $117 million in dividends and ~$60 million went directly to the holders of GSHD's Class B shares because of the company's corporate structure. To be clear, GSHD's shareholders took on debt, held by the company, and more than half of the proceeds went into the pockets of the CEO and the other pre-IPO holders.",
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      "text": "A Tax Receivable Agreement (TRA) also entitles the CEO and other Class B stockholders to 85% of all the tax benefits that flow to GSHD when these shareholders increase GSHD's tax basis by trading in their shares of the underlying business for shares in the holding company. As of Q3 2022, GSHD owed the CEO and the other pre-IPO members $112.4 million under the TRA. At this rate, the CEO and other members could garner an additional $280 million just by swapping their Class B shares for Class A shares.",
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      "text": "GSHD is run by one family, and they have been able to retain an iron grip on the company, despite going public, through GSHD's convoluted corporate structure. GSHD is a holding company that currently owns 56.7% of the underlying business, with the rest held by Mark Jones and other pre-IPO holders. The interests of the pre-IPO members are represented by Class B shares, of which 89% are held by Mark Jones.",
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      "kind": "title",
      "text": "GSHD's Corporate Structure Allows Management to Enrich Themselves at the Expense of Shareholders",
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