The year 2018 is probably the worst year of Mark Zuckerberg’s life because of successive data breaches leading Zuckerberg to testify in front of Congress, now several shareholders are pushing to kick him out from his position as Chairman of the board. Recently, treasurers of Rhode Island, Illinois, and Pennsylvania raised signed a proposal issued by Trillium Asset Management in June.
consequently, the proposal proposes that Mark Zuckerberg ought to be evacuated as the Chairman. This is because of mishandling high profile scandals and lack of transparency. Significant investors will cast a ballot on the proposition in Facebook’s yearly investor meeting planned for May 2019. The proposition requests investors to select an autonomous director, just like Tesla is doing.
According to an official statement from the New York City Comptroller.
“Facebook plays an outsized role in our society and our economy. They have a social and financial responsibility to be transparent – that’s why we’re demanding independence and accountability in the company’s boardroom.
We need Facebook’s insular boardroom to make a serious commitment to addressing real risks – reputational, regulatory, and the risk to our democracy – that impact the company, its shareowners, and ultimately the hard-earned pensions of thousands of New York City workers. An independent board chair is essential to moving Facebook forward from this mess, and to reestablish trust with Americans and investors alike.”
This is not the first occasion that such plans have erupted in motion to disrupt Mark Zuckerberg’s position. In April, a similar attempt was made, but because Zuckerberg holds 60 percent voting rights. Therefore, the plan was unsuccessful.
However, this time, involvement of shareholders
in the plan could be the breakthrough. Several major shareholders like The New York City Pension Funds that own 4.5 million Facebook shares. The Pennsylvania Treasury holds 38,737 shares, Trillium is the owner of 53,000 shares, are backing the proposal.
Facebook has not yet issued any official statement regarding the proposal.