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Investors will try to oust Mark Zuckerberg as chairman of Facebook's board at Facebook's annual meeting on May 30th.
Activist investors push Mark Zuckerberg out of business
Activist investors controlling more than $ 3 billion in shares attempt to oust Mark Zuckerberg as Chairman of Facebook's board, as well as other changes to Facebook's governance, according to a new report Internal business.
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This is not the first time Facebook voting members have challenged Zuckerberg's control over the company, but this challenge to Zuckerberg's authority comes after a brutal year for Facebook. Thanks to Facebook's share structure, there are two clbades of shares, clbad A shares and clbad B shares; Clbad B Shares having 10 times the voting right per share as Clbad A Shares.
Zuckerberg holds 75% of Facebook's clbad B shares, giving him more than half of the votes, regardless of the decision, giving him full control over the company. Activist investors, who had not yet been identified, filed a shareholder proposal to remove the two-clbad stock structure for a single-share voting structure.
Another proposal to be voted on would force Zuckerberg to appoint an independent president to help run Facebook after several major scandals this year that put the company in a more negative light.
Facebook wants shareholders to vote against proposed reforms
Facebook, for its part, told its shareholders that they should vote against the proposals.
"We believe that our board of directors works effectively with its current structure and that this structure provides appropriate supervisory protections," the company said. "We do not believe that requiring the Chairman to be independent will provide significantly better management and performance, and may instead result in inefficiency in the functions and relationships of the Board of Directors and management. . "
Last year, Internal business Trillium Asset Management was the first to report on Trillium Asset Management's plans for governance reforms following the "mismanagement" of the Cambridge Analytica scandal and other embarrbading mistakes made by the company.
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