“The Facebook shareholder revolt just got bloody,” reports Business Insider:
It’s now clear that independent Facebook investors voted overwhelmingly in support of proposals last week to fire Mark Zuckerberg as chairman and scrap the firm’s share structure. According to the results of votes at Facebook’s annual shareholder meeting, 68% of outside investors want the company to hire an independent chairman. The majority was up from 51% last year.
Despite the revolt, the proposals did not pass because of Zuckerberg’s voting control of the stock, which means he can swat away shareholder demands. “Arrogance is not a substitute for good corporate governance,” Michael Connor, who helped coordinate action among activist Facebook investors, said.
“Facebook’s voting rights are tilted heavily in favor of B-class shareholders, which consist almost exclusively of Zuckerberg and his small coterie,” explains Slashdot reader schwit1. “Which means that the company’s founder enjoys all the cash from being publicly-held, but none of the discipline from shareholders.”
Facebook’s investors are now demanding an independent investigation into Zuckerberg’s “outsized” power, according to the article, which notes that 83.2% of outside shareholders also backed a proposal to scrap Facebook’s dual-class share structure altogether.