Facebook Board rejects proposals to reduce Zuckerberg’s power
Facebook Inc. has rejected two proposals to decrease CEO Mark Zuckerberg’s control over the company, an expected result but disappointing for those worried about the CEO’s power.
The board on Wednesday rejected a proposal to replace Zuckerberg as chairman with an independent representative. Zuckerberg, who has served as chairman since 2012, controls about 58% of the voting shares, according to a regulatory filing.
At Facebook’s annual meeting, the board also rejected a proposal to eliminate the special class of high voting shares that gives Zuckerberg a controlling stake in the company. According to the plan, investors would have obtained one vote per share. The Zuckerberg-controlled council has rejected similar motions in recent years.
While not surprisingly, the votes are likely to frustrate shareholders who argue that Zuckerberg has too much power at a time when Facebook needs more independent oversight to deal with its regulatory threats, privacy scandals and its public controversies.
Facebook has also agreed to rename its current roster of directors, including COO Sheryl Sandberg and Palantir Technologies Inc. co-founder Peter Thiel.