Investors want Zuckerberg out as Facebook chairman - Mobile World Live

Investors want Zuckerberg out as Facebook chairman

18 OCT 2018

Four US public funds that are shareholders in Facebook filed a proposal asking CEO Mark Zuckerberg to step down from his role as chairman, following the bad press the social media giant has been receiving of late, Reuters reported.

This is due to issues including data leaks, the spreading of fake news on the platform and allegations that it had a role to play in foreign intervention in the US elections.

Reports state the move is more for symbolic purposes as Zuckerberg has full  control of the board.

Rhode Island State Treasurer Seth Magaziner, one of the co-signers of the proposal, said he hoped it would highlight the importance of Facebook’s troubles and encourage the company to focus on solving them.

The new proposal will be discussed at Facebook’s annual shareholder meeting in May 2019 and will ask the board to create an independent board chair to improve oversight.

“This will allow us to force a conversation at the annual meeting, and from now until then in the court of public opinion,” Reuters quoted Magaziner as saying.

The proposal was also signed by New York City Comptroller Scott Stringer, who oversees New York City’s $160 billion pension fund, plus the state treasurers for Illinois and Pennsylvania.

A similar proposal was defeated last year and three of the four public funds supported that as well. This time the funds are hoping to get the backing of large investors.

At the time Facebook had said an independent chair could “cause uncertainty, confusion, and inefficiency in board and management function and relations.”

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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