A group of shareholders is apparently seeking to remove its Chief Executive Mark Zuckerberg from the boards of directors. They claimed that an independent chairperson would be able to oversee the executives of Facebook, improve corporate governance and set a more accountable and pro-shareholder in a better way.
Facebook shareholders are also the people at SumOfUS.org- a consumer watchdog, which has the eyeing aim to limit Mark Zuckerberg’s power within Facebook by ousting him from the boards of directors and appoint an independent chairperson.
“The four individuals of SumOfUs who held the shares enabled us to file the proposal,” said by Lisa Lindsley, the capital marker advisor of SumOfUs. She also informed that 333,000 people had signed requesting Facebook to improve citizenship. However, it was found that only 1500 out of 33,000 are the actual shareholders in the company.
This proposal has been made to balance in between the CEO and boards for the better future of the company. According to group members, the combination of two roles, CEO and Chairperson, in a single person, weaken the corporation and thereby, reduces shareholder value.
Under the decision, every shareholder including, Mark Zuckerberg, will receive their share of what is called Class C stock for every existing share.