Yesterday, Facebook Chairman Mark Zuckerberg saw $16.8 billion evaporate from his massive bank account in minutes…
According to Reuters, Facebook’s plummeting stock price wiped out about $150 billion in market capitalization in under two hours.
The company had cautioned investors to expect a big jump in costs because of efforts to address concerns about poor handling of users’ privacy and to better monitor what users post. Total expenses in the second quarter surged to $7.4 billion, up 50 percent compared with a year ago.
Today, Facebook shareholders are trying to strip Mark Zuckerberg of his role as chairman of Facebook.
According to the Daily Mail, investment company Trillium Asset Management, who has about $11 million in Facebook stock, filed a proposal on Wednesday to break up Zuckerberg’s role as both chairman and CEO, Business Insider reports.
The proposal argues that shareholders are unable to check Zuckerberg’s power given he holds roughly 60 percent of Facebook’s voting shares as both chair and CEO.
‘A CEO who also serves as chair can exert excessive influence on the board and its agenda, weakening the board’s oversight of management,’ the proposal states.
‘Separating the chair and CEO positions reduces this conflict, and an independent chair provides the clearest separation of power between the CEO and the rest of the board.’
The investment company says this oversight has contributed to Facebook ‘missing or mishandling’ several ‘severe controversies’ in past years, which they say increases risk exposure and costs to shareholders.
Chances of Zuckerberg’s roles being split remain slim given Facebook has rejected similar shareholder requests in the past. A proposal last year to oust Zuckerberg as chairman received 51 percent of the votes.