Facebook shareholders try and fail to limit Mark Zuckerberg’s power

As a regular reader of my newsletter (subscribe here), you’ve been a witness to the relentless stories of Facebook playing fast and loose with user data, identity, security. Facebook then obfuscates, hides, and then slow-walks a response and possible changes. This is followed by returning to their earlier habits and repeating the cycle again months later.

This may not be taking a toll on time spent in the environment by users, but there are questions about growth in new users, or possible global markets.

It appears that the board of investors has has enough, and tried to make some changes and weaken the power of Mark Zuckerberg. Shareholders are furious at the way Zuckerberg has handled a series of Facebook scandals, including election interference on the social network in 2016 and the giant Cambridge Analytica data breach last year. They think the company would benefit from an independent chairman holding Zuckerberg and his top team accountable.

Independent Facebook investors voted overwhelmingly in support of proposals to fire Mark Zuckerberg as chairman and scrap the firm’s share structure. According to the results of votes at Facebook’s annual shareholder meeting last week, 68% of outside investors want the company to hire an independent chairman. The majority was up from 51% last year.

Despite this revolt, the proposals did not pass because of Zuckerberg’s voting control of the stock, which means he can swat away shareholder demands.

The investment options at Facebook are structured so Zuckerberg owns a majority of the votes, and will always control the destiny of the company.

SOURCE: Mashable

Leave a Reply

%d bloggers like this: