Facebook shareholders want Mark Zukerberg out

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A group of Facebook‘s shareholders has reportedly said and put a proposal, demanding for the removal of CEO Mark Zuckerberg from the organization’s board of directors.

The news comes due to a report in Venture Beat website. According to the report, the idea has been put forward by Facebook shareholders who are members of SumOfUs, a consumer watchdog agency that claims to campaign for large corporations’ accountability towards issues of global importance such as corruption and human rights.

The report mentions Lisa Lindsley, capital markets advisor for SumOfUs, saying that the proposal came after 3,33,000 people filed a petition requesting Facebook for the same. Of these, 1,500 were the company’s shareholders.

It further says that in the proposal, the shareholders have asked for appointment of an independent chairperson, who they think can better safeguard the interest of the shareholders by overseeing “executives of the company, improve corporate governance, and set more accountable and pro-shareholder agenda.”

It seems unlikely that this proposal will be accepted as co-founder and CEO of Facebook, Mark Zuckerberg himself is one of the company’s largest shareholders.

Recently, a drop in Facebook‘s stock has left the online social network trading at earnings multiples near record lows as it prepares to hand investors its fourth-quarter report.

In its fourth-quarter report due after the bell on Wednesday, the digital advertising heavyweight is likely to post revenue up 39% and net income up 35%, in line with growth rates in recent quarters, according to the average estimate of analysts tracked by Thomson Reuters.

Facebook‘s PE hit a record low of 31 in 2012 following the company’s botched public listing, which left its stock below its initial public offering price for more than a year. In the past year, Facebook’s stock has gained 25% and it was flat on Tuesday.

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Sameeksha Bhardwaj, From ITvoir News Desk

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