If few influential shareholders have their way, then Mark Zuckerberg could be kicked out as Facebook’s chairman. More than a thousand shareholders have started an online campaign calling for ouster of Zuckerberg from the board of directors. Nearly 1500 stakeholders want to limit his power within Facebook & appoint an independent chairperson to improve governance and accountability.
So why do some Facebook shareholders want to kick out Mark Zuckerberg?
Shareholders of Facebook egged on by the SumOfUs petition are majorly pissed because last year Facebook cleared the issuance of new Class C shares, which largely ensures Mark Zuckerberg’s supreme control over the company continues to be limitless. The petition cites a huge power imbalance at the very top of the publicly traded company, which is why it recommends the ouster of Mark Zuckerberg from Facebook’s board of directors and appointing an independent chairperson to keep Zuckerberg’s power in check.
The petition claims this needs to be done immediately, especially when Facebook “faces increasing criticism regarding its perceived role in the promotion of misleading news; censorship, hate speech and alleged inconsistencies in the application of Facebook’s community standards guidelines and content policies; targeting of ad views based on race; collaboration with law enforcement and other government agencies; and calls for public accountability regarding the human rights impacts of Facebook’s practices.”
Unlikely. Facebook will most likely crush the shareholder group’s demand, because Zuckerberg — as one of the largest shareholders of Facebook — can easily rally around support from other large individual shareholders of the company and just maintain status quo.
It’s not like Facebook or Mark Zuckerberg’s position in the company is an exception of any sort, especially when various companies have the same person in the role of CEO and Chairperson — Amazon, IBM, Tesla, and Netflix to name a few.
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