Facebook shareholders demand Mark Zuckerberg step down as chairman of the board
Facebook shareholders are calling for Mark Zuckerberg to step down as chairman of the company's board of directors.
"The shareholders are asking the board to make the necessary changes to the charter, requiring that the chairman of the board, if possible, be an independent member of the board," the information on the US Securities and Exchange Commission's website reads.
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| Facebook founder Mark Zuckerberg. Photo: AFP |
The announcement also cited examples from Google, Microsoft and Apple, where the CEO and head of the board are two different individuals.
The reason for this proposal given by shareholders is that since July 2018, Facebook's value has decreased by 40% due to the decisions of the board of directors.
Zuckerberg owns 13% of the company, while the board has 51% of the voting power. Current rules allow him not only to make strategic decisions about the company's development, but also to change the board members.
Shareholders have long sought to remove Zuckerberg as chairman of the board and appoint an independent chief executive.
“He has no accountability to anyone: not to the board, not to the shareholders — this is bad management practice,” one of Facebook's investors, Michael Frisch, said last year.
