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article imageDo Facebook shareholders want to remove Mark Zuckerberg?

By Tim Sandle     Aug 1, 2018 in Business
According to various news media, some Facebook shareholders, unhappy with the recent company performance, want to oust Mark Zuckerberg as the chairman.
As Business Insider reports a significantly large contingent of Facebook's shareholders are unhappy with Mark Zuckerberg. One group has put forward a proposal where the intention is to separate the roles of chairman and CEO. Zuckerberg currently holds both of these positions. Zuckerberg receives a one-dollar salary as CEO of Facebook; however, through is share ownership he is estimated to be worth $52.1 billion. This wealth has taken a bit of dip recently, with the social media mogul personally losing $16.8 billion through the share price drop.
The last week in July 2018 saw Facebook shares tumble by more around 20 percent. Despite a rise in profits, the social media network's revenue and new user growth were short of investor expectations, which accounts for the share wobble (see: "Facebook sees shares tumble, but does the future look bright?"). One reason was due to European privacy rules that went into effect in May 2018. These partly resulted in Europe Facebook users dropping from 377 million to 376 million.
The bid to take away some of Zuckerberg's power comes from Trillium Asset Management, who according to Esquire, said: "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 chances of any shareholder group succeeding are slim unless Zuckerberg acquiesces, given that Zuckerberg holds about 60 percent of the voting rights at Facebook.
However, Zuckerberg faces other problems: being sued over poor company performance. A complaint filed by shareholder James Kacouris in a Manhattan federal court. This lawsuit accuses Facebook, Zuckerberg and Chief Financial Officer David Wehner of providing misleading statements about slowing revenue growth, falling operating margins, and declines in active users.
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