Mark Zuckerberg is the CEO as well as the chairman of Facebook and he has been coming across trouble right and left. Recent news reveals that Facebook’s shareholders have turned their backs against Mark Zuckerberg and are accusing him of using his position for practicing dictatorship.
These allegations were made during the SEC filing that occurred on 12th April 2019. Many shareholders revealed a lot of stuff against Zuckerberg.
Along with these accusations, the shareholders are asking Zuckerberg to step down from his position. This problem is very likely to be brought up again in the shareholder meeting that is due on 30th May 2019.
Facebook has been facing many scandals and is in the spotlight at the moment. Facebook has gotten involved in many scandals like the Cambridge Analytica scandal, Russia’s involvement in the U.S. elections and the fake news scandal to name a few.
The shareholders are highlighting the point that Zuckerberg has a lot of control over many aspects of the company which as a result is tarnishing the company’s image. The Trillium Asset Management gave a statement saying that an independent board chair is crucial in the company’s environment and not having this is what has caused all this trouble in the past that the shareholders had to deal with.
The shareholders exposed the fact that Zuckerberg manages almost sixty percent (60%) of the voting shares. According to the shareholders, this much power in one hand is harming the company.
This is not the first time this has happened. In 2017 a similar case occurred but was handled well as the board had taken Zuckerberg’s side that time around. The board was in favor of the fact that Zuckerberg remains the CEO and the Chairman of the company. This shows that shareholders have little to no power when it comes to making drastic changes in the company.
Recently investors have started to lose faith in the company as well. All this is bad enough as it is, but recently it was revealed that Zuckerberg spent over twenty-two million dollars ($22.9 million) on his security in 2018 and over three million dollars ($2.9 million) were spent on the security for the COO of Facebook.
It is also been circulating the media circuits that to divert the media’s attention Facebook has announced trying out the new booming blockchain technology, the company is in reality, facing internal disputes.