Several major Facebook shareholders have submitted a proposal calling for CEO Mark Zuckerberg to step down as chairman of the social media giant’s board. The filing is mostly symbolic, reports TechCrunch, since Zuckerberg has almost total voting control, a set-up that has earned the company board structure comparisons to a “dictatorship.” However, the proposal is noteworthy due to which investors are involved.
The pension funds of New York City are joining activist shareholder Trillium Asset Management. The latter has wanted to remove Zuckerberg as Facebook’s chairman since its disappointing second-quarter earnings report in July. The proposal also includes the state treasurers of Rhode Island, Illinois, and Pennsylvania.
New York City comptroller Scott Stringer called on Facebook’s board to make its chair an independent position in a statement.
“Facebook plays an outsized role in our society and economy. They have a social and financial responsibility to be transparent—that’s why we’re demanding independence and accountability in the company’s boardroom. We need Facebook’s insular boardroom to make a serious commitment to addressing real risks—reputational, regulatory, and the risk to our democracy—that impact the country, its shareholders, and ultimately the hard-earned pensions of thousands of New York City workers,” Stringer said, according to TechCrunch. “An independent board chair is essential to moving Facebook forward from this mess, and to reestablish trust with Americans and investors alike.”
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