Friday, February 10, 2017

"Facebook investors yell at CEO: Get the Zuck out of our boardroom!" (FB)

From The Register:

Proposal would oust Lord Hoodie from chairman role
An activist shareholder proposal is calling for Facebook founder and CEO Mark Zuckerberg to give up his position as chairman of the board.

The proposal [PDF], floated by online advocacy group SumOfUs and backed by a group of Facebook shareholders, requires Zuck to cede the position atop Facebook's board of directors to an independent chairperson.

He would keep his role as CEO of the social network.

The shareholders argue that by having Zuck function as the CEO, chairman and biggest shareholder in Facebook, a conflict of interest is created that prevents the company from considering the best interests of smaller investors.

"In our view, shareholder value is enhanced by an independent board chair who can provide a balance of power between the CEO and the board and support strong board leadership," the proposal reads.

"Independent board leadership is sorely needed at Facebook following the board's decision in 2016 to approve a new capital structure which reduced the rights of Class A shareholders without requiring a majority vote of those shareholders."...MORE
While it is true the company needs an independent board, especially in light of the Andreessen-Zuckerberg (A20G) skullduggery exposed in the current Delaware Chancery Court action,* the company doesn't have to make the change. From Motley Fool:

Can Shareholders Force Facebook Inc. to Find a New Chairman?
Spoiler alert: No, they can't. Read on for the full story

Finally, Mr. Andreessen may want to reevaluate his thinking on where a corporate director's loyalties lie.


"Marc Andreessen Has a Pretty Creepy Relationship With Zuck" (FB)

Facebook's Investors Criticize Marc Andreessen for Conflict of Interest