Facebook shareholders release proposal to oust Mark Zuckerberg as chairman.

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Facebook shareholders want Mark Zuckerberg out as chairman

It's unlikely to happen.


Mikael Thalen


Posted on Oct 17, 2018   Updated on May 21, 2021, 3:51 am CDT

Several Facebook shareholders want CEO Mark Zuckerberg removed as chairman amid numerous privacy scandals faced by the social media company.

The proposal—co-filed by New York City Comptroller Scott Stringer and state treasurers from Illinois, Pennsylvania and Rhode Island—requests the board of directors change the position of board chair to an independent role.

“Facebook’s governance structure continues to put its investors at risk,” Illinois State Treasurer Michael Frerichs said, according to Reuters. “Now is the time for change. We need to see more accountability of Mark Zuckerberg to the board of directors to restore investor confidence and protect shareholder value.”

Stringer, the New York City comptroller, also criticized the company, stating that “Facebook plays an outsized role in our society and our economy.”

“They have a social and financial responsibility to be transparent,” Stringer said. “That’s why we’re demanding independence and accountability in the company’s boardroom.”

The proposal cites Facebook’s “mishandling” of several scandals, including the recent breach involving nearly 30 million Facebook accounts

A previous attempt by shareholders to appoint an independent chair was shot down last year. Zuckerberg currently controls roughly 60 percent of the board’s voting power, making the latest attempt unlikely to succeed as well.

Thus far, Facebook has declined to comment publicly on the attempts to remove Zuckerberg. A vote is set to be held on the proposal during the company’s annual shareholder meeting in May 2019.


H/T Reuters 

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*First Published: Oct 17, 2018, 5:43 pm CDT