A proposal of notable shareholders of Facebook (mainly symbolic) aimed at ousting Mark Zuckerberg as president – TechCrunch

Several big Facebook shareholders submitted a proposal calling on CEO Mark Zuckerberg resign from his position as chairman of the board of directors of the company. The deposit is mainly symbolic, since Zuckerberg has almost total control of the vote, an arrangement that has earned the group a structure comparable to that of a "dictatorship". The proposal, however, deserves to be highlighted, because of the investors involved.

New York City pension funds join activist shareholder Trillium Asset Management, who wants to remove Zuckerberg as president of Facebook since the publication of disappointing second quarter results in July, as well as Rhode state treasurers Island, Illinois and Pennsylvania. The proposal will be voted on at the shareholders meeting of Facebook next year.

In an online statement, New York City Comptroller Scott Stringer called Facebook's board of directors to make his president an independent position.

"Facebook plays a huge role in our society and our economy. They have the social and financial responsibility to be transparent, which is why we are asking for independence and responsibility on the board of directors of the company. We need Facebook's insular council room to seriously commit to reducing the real risks (reputation, regulation, and risks to our democracy) that affect the country, its shareholders, and ultimately the pensions Hardly won from thousands of workers in New York, "Stringer said." An independent board chairman is key to changing Facebook and getting out of this mess, as well as restoring trust with Americans and investors. "

The shareholder proposal was tabled by the New York City Pension Fund, the State Treasurer of Illinois, Michael Frerichs, the State Treasurer of Rhode Island, Seth Magaziner, Pennsylvania Treasurer, Joe Torsella, and Trillium Asset Management.

Stringer, a Democrat who serves as trustee for the city's five public pension funds, which represents a total asset of $ 160 billion, has sharply criticized Facebook. In March, he asked Susan Desmond-Hellmann, Chief Independent Director of Facebook, to improve the company's responsibility for data privacy following the Cambridge Analytica scandal, citing the 4.9 million shares category A held by the pension funds of the city.

Another proposal to replace Zuckerberg as chairman was tabled in April prior to his testimony in the Senate regarding the misuse of Facebook user data by Cambridge Analytica.

TechCrunch has contacted Facebook for a comment.