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Facebook shareholders want Zuckerberg out

by on10 June 2019


The fact he is still there is proof of how much power they have

Independent Facebook investors voted overwhelmingly in support of proposals last week to fire Mark Zuckerberg as chairman and scrap the firm's share structure.

According to the results of votes at Facebook's annual shareholder meeting, 68 percent of outside investors want the company to hire an independent chairman. The majority was up from 51 percent last year.

The proposals did not pass because of Zuckerberg's voting control of the stock, which means he can swat away shareholder demands. Facebook's voting rights are tilted heavily in favor of B-class shareholders, which consist exclusively of Zuckerberg and his small band of chums.

This means that the company's founder enjoys all the cash from being publicly held, but none of the discipline from shareholders.

Facebook's investors are now demanding an independent investigation into Zuckerberg's "outsized" power. 83.2 percent of outside shareholders also backed a proposal to scrap Facebook's dual-class share structure altogether.

Last modified on 10 June 2019
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