Latest News

  • Home
  • Global
  • Facebook shareholders back proposal to remove Zuckerberg as chairman
Facebook shareholders back proposal to remove Zuckerberg as chairman
Monday, October 22, 2018 IST
Facebook shareholders back proposal to remove Zuckerberg as chairman

Four major US public funds that hold shares in Facebook Inc on Wednesday proposed that removing Chief Executive Officer Mark Zuckerberg as chairman following several high-profile scandals and said they hoped to gain backing from larger asset managers.

 
 

State treasurers from Illinois, Rhode Island and Pennsylvania, and New York City Comptroller Scott Stringer, co-filed the proposal. They oversee money including pension funds and joined activist and original filer Trillium Asset Management.
 
A similar shareholder proposal seeking an independent chair was defeated in 2017 at Facebook, where Zuckerberg's majority control makes outsider resolutions effectively symbolic.
 
Rhode Island State Treasurer Seth Magaziner said that the latest proposal was still worth filing as a way of drawing attention to Facebook's problems and how to solve them.
 
"This will allow us to force a conversation at the annual meeting, and from now until then in the court of public opinion," Magaziner said in a telephone interview.
 
A Facebook spokeswoman declined to comment.
 
At least three of the four public funds supported the 2017 resolution as well. The current proposal, meant for Facebook's annual shareholder meeting in May 2019, asks the board to create an independent board chair to improve oversight, a common practice at other companies.
 
It cites controversies that have hurt the reputation of the world's largest social media network, including the unauthorized sharing of user information, the proliferation of fake news, and foreign meddling in U.S. elections.
 
Illinois State Treasurer Michael Frerichs said in an interview that, while an independent chair might not have prevented all the issues, "there might have been fewer of these problems and less of a drop in share price" at the company.
 
 

 
 

Shares of Facebook have had a rocky year, under pressure from revelations about the privacy and operational issues as well as concerns over slowing revenue growth. They closed Wednesday at $159.42, 10 percent lower than at the start of the year and well off a closing high of $217.50 reached on July 25.
 
The 2017 resolution received the support of a slim majority of outside investors, according to the public fund leaders' calculations. Magaziner and Frerichs said they planned to talk with larger Facebook investors in coming months to seek their support.
 
Among funds that are Facebook's largest investors, the Vanguard Total Stock Market Index Fund and Fidelity Contrafund voted against the 2017 proposal, securities filings show, while the American Funds Growth Fund of America supported it.
 
American Funds representatives did not reply to requests for comment on Wednesday. Spokespeople for Fidelity and Vanguard declined to comment. Contrafund manager Will Danoff was supportive of Facebook's response to problems in an investor note in August.
 
In opposing the 2017 proposal, Facebook said an independent chair could "cause uncertainty, confusion, and inefficiency in board and management function and relations."
 
Zuckerberg has about 60 percent voting rights, according to a company filing in April.
 
The New York City Pension Funds owned about 4.5 million Facebook shares as of July 31, while Trillium held 53,000 shares.
 
The Pennsylvania Treasury held 38,737 shares and the Illinois Treasury owned 190,712 shares as of August. Rhode Island funds hold 168,230 Facebook shares, a spokesman said.
 

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
'Worse than prison': A rare look inside China's detention camps to 'brainwash' Muslims

ALMATY: Hour upon hour, day upon day, Omir Bekali and other detainees in far western China's new indoctrination camps had to disavow the...

Recently posted . 199K views . 1 min read
 

 Article
What The Shape Of Your Belly Button Says About Your Health

If you have payed attention to the belly buttons of people on the beach or the members of your family, you have probably noticed that they have different shapes and...

Recently posted . 8K views . 2 min read
 

 Article
Top 10 Horrifying Acts of Chemical Warfare and Gas Attacks

In this age of terror, there might be nothing more terrifying than the thought of an attack carried out with chemical weapons. We’ve all heard the horrific ...

Recently posted . 3K views . 4 min read
 

 Article
Top 10 Best Gym Equipment Brands in India 2018

Body fitness is one thing that everyone wants to maintain irrespective of age. Going to the gym and doing some great exercise always helps to maintain your body fit...

Recently posted . 3K views . 2 min read
 

 
 

More in Global

 Article
Rekindle The Lamps Of Fellow Travellers

What do we mean by human value? It means to treat joys and sorrows, hopes and aspirations sympathetically, and see them merged in Cosmic Consciousness and establish...

Recently posted. 762 views . 3 min read
 

 Article
Fathers are happier humans than mothers, here’s the reason why

Researchers found that fathers’ childcare activities were more likely to be recreational and mothers’ activities were more likely to involve an infant...

Recently posted. 602 views . 1 min read
 

 Article
Gas pump and ATM skimmers: How to spot and avoid them

Use your eyes, fingers, an app and common sense to cut your fraud risk   Your eyes, fingers and now even your smartphone may be...

Recently posted. 1K views . 1 min read
 

 Reviews
Leaseweb hosting review



Recently posted . 1K views . 67 min read
 

 Article
TOP 5 CRYPTOCURRENCIES THAT ARE BEST FOR CRYPTO DAY TRADING

One of the greatest innovations in this era of digital age is that of cryptocurrencies.

Recently posted. 610 views . 0 min read
 

 Article
'Amazon will fail. Amazon will go bankrupt': Jeff Bezos makes surprise admission about Amazon's lifespan

*Jeff Bezos told Amazon employees that he predicts "one day Amazon will fail," according to a recording of an internal meeting heard by...

Recently posted. 674 views . 3 min read
 

 
 
 

   Prashnavali

  Thought of the Day

Remember that life’s greatest lessons are usually learned from worst times and from the worst mistakes.
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top