Get out of Facebook boardroom, say some shareholders to Mark Zuckerberg

A proposal moved by them says that Zuckerberg performing two rules weakens corporation's governance

A group of shareholders are pressurising Facebook Chief executive Mark Zuckerberg to give up his position as chairman of the board. 

A proposal moved by them says that Zuckerberg performing two roles weakens corporation’s governance and can harm shareholder value. 

The proposal was led by SumOfUs, an online campaign platform which it claims is committed to curb the growing power of corporations.

A statement released by them said: "In our view, shareholder value is enhanced by an independent board chair who can provide a balance of power between the CEO and the board and support strong board leadership. Independent board leadership is sorely needed at Facebook following the board’s decision in 2016 to approve a new capital structure which reduced the rights of Class A shareholders without requiring a majority vote of those shareholders." 

After the birth of their daughter, Zuckerberg said he would donate 99% of his wealth through a company he controls with his wife. But this would also mean giving up voting control over Facebook. So, in a bid to keep Zuckerberg in control, during the company’s shareholder meeting in June, participants were asked to vote on a proposal to issue Class C shares. It was later approved by the shareholders. The creation of the Class C shares would allow Zuckerberg to sell the non-voting stock, but keep the voting Class A and Class B shares that would let him retain control of Facebook.

This also comes at the backdrop when Facebook is facing increasing criticism over issues like fake news, censorship, hate speech and alleged inconsistencies in the application of Facebook’s community standards guidelines and content policies and collaboration with law enforcement and other government agencies.