He recapitalized the company with 100,000 shares of common stock and introduced Bylaw XII, a unique provision in the corporate charter. Under this bylaw, any stock owned by a Reynolds Tobacco employee was classified as “A” stock. It entitled holders to an extra dividend based on a profit-sharing formula. Using 1910 profits as a baseline, the company allocated 10% of annual profits exceeding this base to employees. This stock functioned like common stock but included a built-in profit-sharing component, similar to a modern 401(k).