Founder and the Chairman of Facebook, Mark Zuckerberg, is likely to be fired from the role of Chairman if all goes well. Zuckerberg is likely to step-down as chairman as shareholders are unhappy with him.
The high-profile investors of Facebook have called for the step-down of Zuckerberg as the company's chairman. The shareholders have filed a proposal following the spree of controversies, scandals at the social media giant including the large-scale data breaches and accusations that the social media platform has become centre of misinformation campaigns and political propaganda.
The shareholders and investors are wanting the role of chairman an independent position. Many have raised question over Zuckerberg's strong control over Facebook.
State and city treasurers from Illinois, Rhode Island and Pennsylvania joined the New York City Pension Funds and Trillium Asset Management have requested the Facebook board of directors to make the role of chairman an independent position. "Doing so is best governance practice that will be in the interest of shareholders, employees, users, and our democracy," the filing states.
The proposal cites Facebook's "mishandling" of "severe controversies," including how the social network was used to manipulate the 2016 US presidential elections through Russian troll farms, and the sharing of data with Chinese device manufacturers like Huawei.
FB To follow Google, Microsoft and Apple?
Shareholders are of the opinion that the present governance structure at technology firm puts investors at risk and it should fall in line with other major tech firms like Google, Microsoft and Apple in having separate CEO and chairperson roles.
The proposal will be put to a vote at the company's annual shareholder meeting in May 2019, however it will be largely symbolic due to the control that Mr Zuckerberg has over the company's board.
"Why does Mr Zuckerberg need [voting control]? Is it because he does not want governance to evolve with the rest of his company? If so, this American dream is now akin to a dictatorship," investment officer of California State Teachers' Retirement System (CalSTRS), which holds shares in Facebook, wrote in an op-ed in The Financial Times.