Facebook shareholders propose removing Mark Zuckerberg as chairman

FILE- Facebook's CEO Mark Zuckerberg gestures and delivers his speech during the Viva Tech trade fair in Paris

Three state treasurers and the New York City comptroller have joined a shareholder proposal to strip Chief Executive Mark Zuckerberg of his chairmanship.

"They have a social and financial responsibility to be transparent - that's why we're demanding independence and accountability in the company's boardroom", said New York City Comptroller Scott Stringer in a statement released by Trillium.

The proposal said lack of independent board chair and oversight has contributed to Facebook "mishandling" a number of severe controversies, including Russian meddling in US elections and the Cambridge Analytica data leak. It also dealt with user trust and privacy backlash following the Cambridge Analytica scandal and a recent data breach that compromised up to 30 million user accounts. The fund holds 4.7 million shares in Facebook as of the end of the first quarter.

IL state treasurer Michael Frerichs said in an interview that, while an independent chairman might not have prevented all the issues, "there might have been fewer of these problems and less of a drop in share price" at the company.


The shareholder initiative (read it here) acknowledges that an independent director would have a limited ability to check Zuckerberg's power, but adds that separating the CEO and Chairman's roles would give the executive more time to focus on managing the company. Rhode Island State Treasurer Seth Magaziner explains, "This will allow us to force a conversation at the annual meeting, and from now until then in the court of public opinion". "Having an independent board chair, separate from the Mr. Zuckerberg's role as CEO, is in the best long-term interest of Facebook shareholders, including the members of Rhode Island's pension system". The effort is being led by Trillium Asset Management. Some 59% of the S&P 1,500 have similar arrangements as of April 2018, the group said.

Big public investment funds are throwing their weight behind a push to oust Mark Zuckerberg from the helm of Facebook's board.

The proposal, however, is also said to be largely symbolic: Zuckerberg owns 60% of the voting power among shareholders thanks to his owning a special kind of company stock that has 10 times the voting power.

A Facebook spokesperson declined to comment on the proposal. But in a proxy filing for 2017, the company noted a proposal to appoint an independent chair was voted down previously.

Related News:



Most liked

Xiaomi Mi Mix 3 wants to steal the spotlight again
But the Mi Mix series has been consistently surprising, and can't wait to find out what Xiaomi has dreamt up this time. Further, it is expected to carry in-screen fingerprint sensor with a dual camera shooter on the backside.

Google Maps update brings real-time ETA
If you don't have the update there's no use spamming the Google Play Store, this looks like a server-side switch. In a recent blog post, Google made the announcement that the new and improved Maps application just got better.

Red Dead Redemption 2
It makes for pretty grim reading, including one individual who spoke of his experience with the Grand Theft Auto V crunch. Have you pre-ordered Red Dead Redemption 2 digitally?

Black Ops 4: What Are the Best Guns in Blackout
This isn't anything all that new for the Call of Duty franchise, but it still remains staggering just how much longevity this series has had.

Apple Event Scheduled for 10/30, New iPads Expected
Reporters were emailed invitations to the event on Thursday, which featured colourful, artistic renderings of the Apple logo. In March, the company announced new education software and an update to the entry-level iPad at a Chicago-area high school.

Great Flood A'Coming? 'Ominous' Sounds of Melting Antarctic Ice Registered
Mr Chaput and his team were using seismic sensors to learn more about the structure and movements of the Ross Ice Shelf.

'Rogue Killers' May Have Murdered Saudi Journalist, Trump Suggests
On Sunday, a Treasury Department spokesman told CNN , "We will be evaluating the information that comes out this week". President Trump, however, suggested Monday that " rogue killers " may be the reason for Khashoggi's disappearance.

Nigeria Makes Progress In Global Competitiveness Report
Nearly 30 points and 80 ranks separate the United States from Argentina, the worst performing economy of the group. Governments and businesses risk facing a negative impact on growth and productivity, warned the WEF report .

Lewis Hamilton arrives in Austin looking to seal fifth world championship
The jovial mood in the paddock will get more serious this weekend as Hamilton has the opportunity to win his fifth world title. In stark contrast, Hamilton has won five of the six races in Austin, including the previous four.

Barefoot on the beach! Harry and Meghan hit Bondi
The pregnant Duchess of Sussex's stylist and best friend, Jessica Mulroney , is also spending some time in Australia right now. She said: " Meghan said it was her "leveller", it's what keeps her grounded, like surfing does for us".

Grab Apple iPhone XR tomorrow; Check features & latest price
It is available in five colors with a price tag of $749 in the United States, £749 in the UK, and over €849 in Continental Europe. Apple unveiled iPhone XS , iPhone XS Max and the cheaper 6.1-inch LCD iPhone XR at the launch event on September 12.

No progress at Brexit summit, talks continue
But the meeting that had been painted as a make-or-break moment for a Brexit deal ended with a whimper. Britain would have to negotiate this but it has been estimated at anywhere between £10bn and £17bn.

Special Briefing: Canada Legalizes Recreational Marijuana | Need to Know
With the launch of the BC Cannabis Stores website , cannabis prices for the province have been revealed to the public. Even in provinces with more shops, empty shelves are likely due to a shortage of product.

Ebay sues Amazon over 'orchestrated campaign to poach sellers'
An Amazon spokesperson said the company is "conducting a thorough investigation of these allegations". Ebay says it wants to stop Amazon misusing its messaging platform and to pay it an unspecified sum.

Some Manchester United players upset over criticism by former stars
They now travel to Stamford Bridge to take on an in-form Chelsea side with Jose Mourinho heading back to his old stomping ground. Chelsea FC are in second place in the Premier League table and seven points ahead of Manchester United in eighth spot.