Investors want Mark Zuckerberg to step down as Facebook Chairman

A group of shareholders, known as 'SumOfUS', is asking for a change in the management of Facebook.


Currently, the CEO of Facebook is facing assaults from a group of investors, who want him to step down from the post of Chairman of the company. Zuckerberg has been on the board since 2012 and until recently the investors and shareholders never really expressed any agitation like this.

Right now a group of shareholders, known as 'SumOfUS', is asking for a change in the management of Facebook.

SumOfUS stated a proposal that the company needs a change in balancing of power between the CEO and the board. The group also stated that the social media giant needs a strong board leadership, which owns the responsibility to the serious issues such as fake news, online harassment and hate speech.

The proposal also pointed out that independent committee administration is distressfully required at Facebook taking after the board's choice in 2016 to support another capital structure, which lessened the privileges of "Class A" shareholders without the need for a dominant part vote of those shareholders.

The group pointed out that Mark Zuckerberg could bring about enormous problems to the company. However, as stated by one of the Associate Professor of Management and Operations at New York University, Robert Salmon, the shareholders bought the stock and they only allowed Zuckerberg to control the company. So, at this point, the CEO has no obligation to do anything with the nonprofit organisation SumOfUs and their claims.

According to mashable, Facebook has two types of shares, one where each votes count as ten and the other where one counts as one vote and the CEO has control over 57 per cent of the voting power, which means the other shareholders are basically under the monitoring and order of the CEO Mark Zuckerberg. Thus, the decisions will still be made by him.

Thus it seems that Zuckerberg is here to stay.

This article was first published on February 12, 2017