The strong control of Mark Zuckerberg, the chief executive and founder of Facebook, has come under question. He is facing pressure after several high-profile investors called for him to step down from his post as the chairman of the social media giant after a series of scandals.
Various public funds in the United States of America who own shares in the firm have issued calls for Zuckerberg to step down from the position after the social media giant “mishandled” a series of controversies which included large-scale data breaches and accusations that the social network has already become a platform for misinformation campaigns and political propaganda.
Facebook was at the centre of the Data leak that involved Cambridge Analytica. It has also been accused of Russian influence in the 2016 presidential election in the United States and the sharing of data with Chinese device manufacturers such as Huawei.
Public funds from Rhode Island, Illinois, New York City, and Pennsylvania have lent their names to a proposal that was made by Trillium Asset Management, a hedge fund, last June.
The filing states: “Doing so is best governance practice that will be in the interest of shareholders, employees, users, and our democracy.”
According to the shareholders, the governance structure of Facebook places the investors at risk and should already fall in line with other major tech companies such as Microsoft, Apple, and Google in having separate CEO and chairperson roles.
They say that the chairman of the board of Facebook should be an independent position in order to ensure transparency.
Scott Stringer, New York City comptroller, stated: “Facebook plays an outsized role in our society and our economy. They have a social and financial responsibility to be transparent – that’s why we’re demanding independence and accountability in the company’s boardroom.”
The said funds are believed to hold around 5 million of the 2.9 billion shares of Facebook collectively.