Zuckerberg isn’t popular, should quit as chairman of Facebook, says a shareholder with 1 billion dollar stake

mark zuckerberg

The Hush Post | 14:43 pm | two-minute-read

Should Mark Zuckerberg step down as Facebook’s chairman? Well that the sentiment according to an official, who is in charge of investments for New York City’s pension funds, which hold an approximately $1 billion (£710 million) stake in Facebook.

Scott Stringer, New York City’s comptroller, called for a complete change of Facebook’s board. This after the Cambridge Analytica scandal came to light.

Stringer has sought an independent chairman to replace Zuckerberg. In addition to it, he wants three new directors with experience in data and ethics to help strengthen Facebook’s privacy.

“It is the eighth-largest company in the world. They have 2 billion users. They are in uncharted waters and they have not comported themselves in a way that makes people feel good about Facebook and secure about their own data,” Stringer said.

He said the scandal showed there was “a risk to our democracy.”

Stringer said the funds wouldn’t pull their money out of Facebook, but added, “We do have the right to ask these questions.”

As chairman and CEO of Facebook, Zuckerberg has an unusual control over FB. He owns a controlling number of voting shares over the stocks. This gives other investors no say over the company’s governance. It’s unlikely Zuckerberg will step away from either role anytime soon, but the Cambridge Analytica scandal is a good chance for activist investors to call for changes.

However, Zuckerberg has said his personal control of the firm was actually good for users.

The data privacy scandal, where Cambridge Analytica scraped 50 million user profiles without their permission, has wiped around $86 billion off Facebook’s market cap since the news came out March this year.

 

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