Facebook shareholders are proposing to remove CEO Mark Zuckerberg from the board of directors. The shareholders claim that a combination of both roles may weaken a corporation’s governance, which also harms shareholder value. The shareholders are also members of SumOfUs, an online consumer watchdog group.
As per reports, the capital markets advisor of SumOfUs requested Facebook to improve its corporate citizenship has been signed by 3,33,000 people. Of which, 1,500 are Facebook shareholders itself. “The shares held by four individual SumOfUs members enabled us to file this proposal,” says, Lindsley, in a statement.
Mark Zuckerberg owns a majority of shares have the chance to strike down the proposal along with other board members. Adding to this, it is proved that Facebook has observed a strong growth under the leadership of Zuckerberg. However, Facebook is now well off with the Financial performance with a profit of $3.57 billion quarterly.
The user base has increased 17 per cent up and now makes 1.86 billion regular users as of December 31. CEO Zuckerberg is a member of the Facebook board of directors since 2012. Zuckerberg and his wife Priscilla Chan has pledged to donate 99 percent of their shares to advance human potential and promote equality for children.
The proposal demands to target ad views based up on race, its role in the promoting misleading news, censorship, hate speech, and alleged inconsistencies, collaboration with law enforcement other government agencies.
Recently, Facebook has started scanning fake news on its platform from August last year. There were allegations against conservative news in its Trending Section back then. Facebook denied the charges and removed human editors for deciding ‘Trending’ topics ever since then.
“There could be a 99 percent vote for it and the board would not be under legal obligation to implement it. However, most competent board members realize that it is unwise to ignore the voice of the shareholders whose interests they are charged with representing.” Said, Lindsely.