Facebook’s board of directors rejects proposal to reduce Zuckerberg’s control over the company

Mark Zuckerberg founded Facebook in 2002 from his dorm room while studying at Harvard University, he has remained the CEO ever since. Under Mark Zuckerberg leadership, Facebook and its subsidiaries have seen massive growth over the years and has remained the biggest networks for quite a long time now. Apart from being the CEO Zuckerberg also has around 58 percent of the company’s voting shares which gives Zuckerberg a lot of power and control over Facebook.

Some Facebook shareholders think that Mark Zuckerberg’s massive power over the company decision’s is not good for Facebook and the company needs much more independent leadership to tackle the increasing problems around the security, privacy and controversies.

Recently Facebook Inc. received proposals that said to reduce the power that Zuckerberg have over the company, However Facebook refused to accept both the proposals. Apart from that, on Wednesday Facebook refused to accept a proposal that asked to replace Zuckerberg from the chairman. Zuckerberg has been the chairman of Facebook since 2012 and has the most voting right in the company.

Facebook has a special type of voting shares which gives anyone that holds them a right to vote while making important decisions, making the people that hold these shares have a very important position in the company. During its annual meeting this year a proposal came up that asked to remove these special type of voting shares from the company since they give Mark Zuckerberg a lot of control over Facebook as he holds 58 percent of them, however this proposal was rejected by the board of directors. Proposals that wanted to decrease Mark Zuckerberg’s control over Facebook have been presented a lot of times in the past few years but all of them have been rejected by the board of directors controlled by Zuckerberg.

The continuous rejection of motion that want Zuckerberg to not have this much power over Facebook have made many Facebook shareholders a little dis satisfied. Shareholders argue that Facebook would function much better if its more independent.

Apart from that Facebook recently announced that they will be reappointing their board of directors which include big names like Facebook Chief Operating officer ‘Sheryl Sandberg’ and the co-founder of Palantir ‘Peter Thiel’, the reappointing of the current board of directors will surely dis satisfy shareholders that do not like Zuckerberg having power of Facebook.

Image: PDA / PictureAlliance / Getty

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