Daily Management Review

Zuckerberg Faces Shareholders’ Vote In Annual Company Meet


05/31/2019


Users’ of Facebook are concerned for privacy over social media.



Source: flickr.com; (CC BY 2.0)
Source: flickr.com; (CC BY 2.0)
The Chief Executive Officer of Facebook, Mark Zuckerberg had to face a “vote of leadership” during the annual “general meeting” of the company. However, reports have claimed that Zuckerberg is not likely to give up his control over the company and in turn step down from the chairman’s post. He also holds sixty percent shares of the company.
 
Facebook has been placed against a backdrop of “massive privacy concerns, data breaches” and its “brutish data collection practices”, while stakeholders and users alike have grown to perceive social media in a particular light which has become a “growing concern”. Many investors even “part-significant shareholders” are of the opinion that Zuckerberg should relinquish his post as the chief executive officer of Facebook, as they have been asking him to “step down from his position”.
 
Furthermore, stakeholders have called out for company break-up so as to “address allegations of anti-trust and monopolistic practices”. The said plea happens to be led by one of the company’s “own co-founders”, Chris Hughes who also happens to be a long-time friend of the C.E.O.
 
So far, Zuckerberg has refused to comply with any such “statements or requests”. The monopoly of Facebook in the said industry is an issue that surfaced repeatedly, which even came up in the US Senate hearing of Zuckerberg.
 
According to Zuckerberg’s claims, Facebook has “specific industry rivals” and it is “not a monopoly”, although he failed to convince anyone with this statement. According to news18.com:
“Many have questioned the amount of control that Zuckerberg can assert on Facebook, and his position of power with 60 percent of Facebook's shares mean that he can practically override any decision that his board takes, which goes against his will. This, in turn, would give in to running a billion-dollar technology behemoth at the whims of one man — a situation that many shareholders, governance officials, users and general observers alike are not comfortable with. Ex-security chief of Facebook, Alex Stamos, had also joined in urging Zuckerberg to step down and relinquish some control, in order to soak up and control the steady headwind of allegations that Facebook has faced in the industry”.
 
However, shareholders had to face protestors carrying inflatable angry emoji ballons as they gathered for the meet, as the measures to oust Zuckerberg had “little chance of succeeding, as a dual-class share structure gives Zuckerberg and other insiders control of about 58% of the votes.” Several investors have overlooked the scandals that surround Facebook as it has surpassed “Wall Street's estimates for revenue growth and continues to add users globally”.
 
 
 
References:
news18.com
timesnownews.com







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