Short Bytes: Facebook’s co-founder is currently the CEO and the board chairman. A proposal filed by shareholders, who also belong to the group SumOfUS, puts emphasis on the appointment of a new ‘independent’ chairman for the Facebook’s board of directors. This is to suit the best interests of the shareholders in the long run.Facebook might be reaching the paradigms of success, but the company’s shareholders aren’t very much comfortable with all the powers Mark Zuckerberg has. Since 2012, Zuckerberg has been acting as both the CEO and the board chairman at Facebook.
According to a proposal submitted by the shareholders – who are a part of the corporate power damper group SumOfUS – that there is a need for independent Chairman of Facebook’s board. “In our view, shareholder value is enhanced by an independent board chair who can provide a balance of power between the CEO and the board and support strong board leadership.” – reads the proposal.
Another thing that escalates the shareholders’ eagerness for an independent chair is the new capital structure approved by Facebook last year. It introduced new non-voting Class C stocks and aimed at fuelling Zuckerberg’s philanthropy projects for which he would be selling 99% of his shares. However, the new structure compelled a shareholder to file a lawsuit as it increases Zuckerberg’s control over the company.
Shareholders further say that the new independent chairman’s appointment would be “particularly constructive” in the times when Facebook is being accused of behaving as a promotional platform for fake news, hate speech, and other scenarios. Ultimately, it’s the Zuckerberg-led Facebook board to make a decision on this proposal.
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