Mark Zuckerberg faces fresh call to be removed as Facebook’s chairman

Mark Zuckerberg’s role as chairman of Facebook is in jeopardy once again as a handful of major shareholders called for him to be removed from the post on Wednesday.

The social network’s founder holds the position of chief executive and chairman but four US public funds that hold shares in the company want Mr Zuckerberg to leave the latter role.

It follows a string of controversies, including the recent data breach that affected 29 million accounts.

<figcaption class='imgFCap'>(Dominic Lipinski/PA)</figcaption>
(Dominic Lipinski/PA)

“Facebook’s governance structure continues to put its investors at risk,” Illinois State Treasurer Michael Frerichs said.

“Now is the time for change. We need to see more accountability of Mark Zuckerberg to the board of directors to restore investor confidence and protect shareholder value.”

Mr Frerichs, along with Rhode Island State Treasurer Seth Magaziner, Pennsylvania Treasurer Joe Torsella, and New York City Comptroller Scott Stringer, join an earlier proposal from investment management firm Trillium Asset Management that was filed in June.

The group is calling for the role of chairman to be made an independent position in a bid to re-establish trust.

<figcaption class='imgFCap'>(Dominic Lipinski/PA)</figcaption>
(Dominic Lipinski/PA)

“Without an independent board chair, the board’s oversight of the company remains inadequate as evidenced by the recent mishandling of several controversies,” Mr Magaziner said.

“Having an independent board chair – separate from the Mr Zuckerberg’s role as CEO – is in the best long-term interest of Facebook shareholders, including the members of Rhode Island’s pension system.”

Scandals including alleged Russian meddling in the US elections and allowing advertisers to exclude “ethnic affinities” from seeing adverts are among the controversies shareholders list in the proposal.

The issue will be put to a vote at the company’s annual shareholders’ meeting in May next year.

- Press Association

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