Some major Facebook shareholders have filed a proposal to remove current CEO Mark Zuckerberg as the company’s board chairman. This comes as no surprise since Zuckerberg has almost total control hence making people compare the company’s board structure to a dictatorship regime.
This isn’t the first or second time a proposal has been filed to oust Zuckerberg as chairman. Before Zuckerberg’s testimony at the Senate about Cambridge Analytica’s misuse of Facebook user data, a proposal was filed to remove him as chairman.
Also, after the company’s disappointing second-quarter earnings report in July, some board members filed a proposal to remove the Facebook CEO.
Scott Stinger, a New York City comptroller in an online statement called the attention of Facebook’s board on the need to make its chair an independent position. In his statement, he said, “Facebook plays an outsized role in our society and economy. They have a social and financial responsibility to be transparent—that’s why we’re demanding independence and accountability in the company’s boardroom. We need Facebook’s insular boardroom to make a serious commitment to addressing real risks—reputational, regulatory, and the risk to our democracy—that impact the country, its shareholders, and ultimately the hard-earned pensions of thousands of New York City workers,” Stringer said. “An independent board chair is essential to moving Facebook forward from this mess, and to re-establish trust with Americans and investors alike.”
The current proposal to oust Mark Zuckerberg as Chairman was filed by the New York City Pension Funds, Illinois state treasurer Michael Frerichs, Rhode Island state treasurer Seth Magaziner, Pennsylvania treasurer Joe Torsella, and Trillium Asset Management.
The proposal will be voted on at Facebook’s shareholder meeting next year.
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