Social media giant Facebook’s CEO might soon be removed from the board of directors of the company. VentureBeat report mentioned that shareholders have proposed to replace Zuckerberg, who has been on the board since 2012, with an independent chairperson. They are of the opinion that an independent chairperson will carry the company forward with better corporate governance and pro-shareholder agenda.
As per the report, the idea was proposed by a watchdog group of shareholders called SumOfUs. Intel’s former chair Andrew Grove said in the proposal: “The separation of the two jobs goes to the heart of the conception of a corporation. Is a company a sandbox for the CEO, or is the CEO an employee? If he’s an employee, he needs a boss, and that boss is the board. The chairman runs the board. How can the CEO be his own boss?”
Around 3,33,000 people filed for a petition asking for the removal of Zuckerberg as the Chairperson of the board of directors. Apparently, only 1,500 of them were shareholders.
Meanwhile, Zuckerberg- the founder and CEO of Facebook- will hardly be affected by this move. He owns a considerable amount of shares of the company and has a big say in the decision of the company. Additionally, the social media giant is not making any losses and it could only be the case when such a big decision happens in big corporates.
The proposal claims that “We believe the combination of these two roles in a single person weakens a corporation’s governance, which can harm shareholder value.” It added, “We believe that independent board leadership would be particularly constructive at Facebook as our company faces increasing criticism regarding its perceived role in the promotion of misleading news; censorship, hate speech and alleged inconsistencies in the application of Facebook’s community standards guidelines and content policies..”
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