Facebook investors are calling for Mark Zuckerberg to give up ‘dictator’-like power
11:20, Wednesday, 27 June, 2018
After widespread criticism of Facebook’s handling of election meddling, fake news and the Cambridge Analytica scandal, investors are growing increasingly frustrated at the company’s leadership.
Now, some are openly calling for Zuckerberg to scale back his role in the company he created.
Business Insider recently interviewed six prominent independent Facebook investors who control a total of $3 billion in stock and “are trying to topple Mark Zuckerberg as chairman and tear up the company’s governance structure.”
One main point of contention is the way the company’s stock system is set up. Facebook uses a dual-class stock structure in which each class is valued the same monetarily but weighted differently in voting power. Facebook’s Class B stock has 10 times more voting power than the other.
Zuckerberg, who’s chairman and CEO of Facebook, controls more than 75 percent of Facebook’s Class B stock. This gives him nearly unchecked power over the company, enabling him to shoot down shareholder proposals, veto mergers, and vote directors on and off the board.