Facebook investors want Zuckerberg removed as chair

  • 18/10/2018
Mark Zuckerberg
Mark Zuckerberg. Photo credit: Reuters

Several public funds with holdings in Facebook have backed a proposal to remove chief executive officer Mark Zuckerberg as chairman.

The proposal, originally bought to the table by hedge fund Trillium Asset Management, is now backed by state treasurers from Illinois, Rhode Island and Pennsylvania. New York City Comptroller Scott Stringer also joined the shareholder proposal.

The proposal, backed by the state treasurers of Rhode Island, Illinois and Pennsylvania, and the New York City comptroller, is asking Facebook's board to make the role of board chair an independent position.

Mr Zuckerberg owns the majority of the company's supervoting shares, giving him just under 60 percent of the voting power, so will have little practical effect on his control of the company, the Wall Street Journal reported.

The proposal's backers say Mr Zuckerberg has struggled to guide Facebook through a rough period, which includes data breaches and accusations it spreads misinformation.

"An independent board chair is essential to moving Facebook  forward from this mess, and to re-establish trust with Americans and investors alike," said New York City comptroller Scott Stringer.

Facebook declined to comment. The company's shares have dropped 27 percent in the last three months.

Reuters / Newshub.