Why 68% of investors on Facebook voted against President Zuckerberg

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The pressure for Facebook (FB) CEO Mark Zuckerberg is stepping up to reduce his influence in the company after 68 percent of shareholders voted to split his roles as chairman and chief executive last week. The proposal would also create an independent director on the board of directors. "Data-reactid =" 15 "> The pressure for Facebook CEO (FB) Mark Zuckerberg to reduce his influence within the company is stepping up after 68% of shareholders voted in favor of splitting his President and President – executive roles last week.The proposal would also create an independent chairman of the board of directors.

Trillium Asset Management, which holds nearly $ 7 million worth of Facebook shares, filed the proposal, saying having one person at a time as CEO and president allowed the big social media giant to evolve many incidents.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" What we are seeing now is really a concentration of power in an individual, as we see with Mark Zuckerberg, is a source of major concern, "said Trillium Asset's SVP, Jonas Krone & & nbsp;YFi PM from Yahoo Finance. "This is a shareholder proposal that has garnered 50% of the votes in 2017. Clearly, a lot has happened in the last two years and this vote has gone up in the past year." 68% is an important message for the board and for Mark Zuckerberg personally. "" Data-reactid = "17"> "What we are currently seeing is the concentration of power in an individual, as we see with Mark Zuckerberg, is of great concern Jonas Krone, Vice President of Trillium Asset, told YFi PM This shareholder proposal has garnered 50% of the votes, and obviously a lot has happened in the last two years, and seeing this vote go up to 68% is an important message for the Board of Directors. Administration and for Mark Zuckerberg personally. "

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The push comes as Facebook faces a scrutiny in its handling of users' personal information and antitrust concerns.The Federal Trade Commission and legislators of the House are & nbsp;would have& nbsp; Planning a thorough review of Facebook, with Google (GOOGL) and other large technology companies – to determine whether they stifle competition at the cost of consumer safety. "Data-reactid =" 18 "> This impetus comes as Facebook faces the scrutiny of users' personal data processing and antitrust concerns, and the Federal Trade Commission and legislators in the House plan for a thorough review. of Facebook – with Google (GOOGL) and other leading technology companies – to determine whether they were stifling competition to the detriment of consumer safety.

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Nevertheless, Zuckerberg's voting power will probably be able to delay the proposal despite antitrust concerns. The participation of the Chief Executive Officer gives him 10 times the votes of the average shareholder, holding 57.7% of the votes this year. Even then, Krone says the proposal gives shareholders an indispensable voice.

"We are providing a way for Wall Street investors to share their opinion and I think [Zuckerberg] respect that opinion, "notes Krone. "I think he can look around and see that Alphabet and Apple, Autodesk and Microsoft all have independent board presidents. Alphabet has a two-class structure and an independent chairman of the board as well as a founder / CEO. So, I think we have a lot of templates for Mark Zuckerberg and Facebook. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And companies sharing power at the top are growing According to the leadership consulting firm & nbsp; half of the S & P 500 industry had a separate president and CEO in 2018, up from 39% 10 years ago.Spencer Stuart. "data-reactid =" 32 "> And the corporate division at the top of the hierarchy is a growing trend: half of the S & P 500 companies had a separate president and CEO in 2018 compared to 39 percent a decade ago, according to Spencer, Stuart, a leading consulting firm.

According to Krone, separation is important for investors who can not just leave Facebook if they do not agree with its structure.

"There are many types of Facebook investors right now," says Krone. "Some of them are investors who could sell, but many investors are not able to do it. Facebook is in the indexes, so they will have to own Facebook. For these investors, it is the only way they must act and communicate on behalf of their clients, shareholders and beneficiaries. "

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