Zuckerberg Out? Facebook Shareholders Want to Remove Chairman From Board
Shareholders have expressed a desire to abolish Facebook’s dual-class share structure, which, according to them, gives too much power to Zuckerberg and his team of executives.
Major Facebook investors, who together hold $3 billion in company shares, are going to dismiss its founder Mark Zuckerberg from the post of chairman of the board and deprive him of power in the company, Business Insider reports.
The growing discontent among Facebook shareholders concerns the way the social media giant's founder manages the social network. In their opinion, the reaction to all the problems that the company has faced recently has not happened because the company's corporate structure makes Zuckerberg inviolable in the role of executive director and chairman of the board.
According to them, they have not been in such an uproar since 2012, when the company made an IPO.
"We have concerns about the structure of the board that the company doesn't seem ready to address, which can lead to risks — reputational, regulatory, and otherwise," New York City's comptroller, Scott Stringer, who manages about $895 million worth of Facebook shares through city pension funds, said.
They want to replace Mark Zuckerberg with an independent executive director.
Facebook CEO Mark Zuckerberg has recently been asked to provide information concerning his company's handling of private user information in the wake of media reports on the practice.
In March, Facebook faced public outrage as personal data of about 50 million of its users was harvested by the Cambridge Analytica consultancy firm without their permission through a special app.
The information was supposedly used to help target political advertising.
In early April, Facebook calculated the number of users affected to be at around 87 million.
- Source : Sputnik
