Shareholders have expressed a desire to abolish
Facebook’s dual-class share structure, which,
according to them, gives too much power to
Zuckerberg and his team of executives.
Major Facebook investors, who together hold $3 billion in
company shares, are going to dismiss its founder Mark Zuckerberg
from the post of chairman of the board and deprive him of power
in the company, Business Insider reports.
The growing discontent among Facebook shareholders concerns
the way the social media giant’s founder manages the social
network. In their opinion, the reaction to all the problems that the
company has faced recently has not happened because the
company’s corporate structure makes Zuckerberg inviolable in the
role of executive director and chairman of the board.
According to them, they have not been in such an uproar since
2012, when the company made an IPO.
“We have concerns about the structure of the board that the
company doesn’t seem ready to address, which can lead to risks
— reputational, regulatory, and otherwise,” New York City’s
comptroller, Scott Stringer, who manages about $895 million worth
of Facebook shares through city pension funds, said.
They want to replace Mark Zuckerberg with an independent
executive director.
Facebook CEO Mark Zuckerberg has recently been asked to
provide information concerning his company’s handling of private
user information in the wake of media reports on the practice.
In March, Facebook faced public outrage as personal data of
about 50 million of its users was harvested by the Cambridge
Analytica consultancy firm without their permission through a
special app.
The information was supposedly used to help target political
advertising.
In early April, Facebook calculated the number of users affected to
be at around 87 million.
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