Cloud storage provider Dropbox is under pressure from activist investor Half Moon Capital to eliminate its dual-class share structure, which grants CEO and co-founder Drew Houston a voting supermajority, according to a report by The Wall Street Journal on Monday.

Half Moon Capital, a small hedge fund, has criticized Dropbox’s slowing revenue growth and its strategy on payment tiers. The fund argues that the current share structure has prevented shareholders from holding management accountable for “significant missteps.”

The hedge fund holds approximately 40,000 Dropbox shares, valued at about $1.1 million. However, the proposal to remove the dual-class structure would require a majority vote to pass—meaning Houston’s approval would be necessary. Houston currently holds a 77% voting stake due to his Class B shares, which carry 10 times the voting rights of Class A shares.

Half Moon Capital believes that pushing the proposal at Dropbox’s annual meeting will encourage management and the board to implement other governance changes. Dropbox and Half Moon did not immediately respond to requests for comment.

In recent years, Dropbox has faced workforce reductions amid shifting business strategies. The company announced in October 2024 that it would cut 20% of its workforce globally, following a 16% reduction in 2023.