Activist Facebook investors will once again try to oust Mark Zuckerberg as chairman and eliminate the company's unfair share structure.
In a Securities and Exchange Commission filing on Friday, Facebook announced its annual general meeting on May 30 and confirmed the proposals made by investors, which will be voted on during the event.
Among the eight shareholder proposals are two known to Zuckerberg and the rest of the board: Investors are making another attempt to force corporate governance change in the social network.
One is titled "A shareholder proposal for an independent chairman" and calls for Zuckerberg to be dethroned as CEO, replacing an independent executive in his place.
Wrong Mark Zuckerberg as Chairman
Business Insider broke the news of the proposal in July last year after he had revealed the plans of activist shareholder Trillium Asset Management, from "maltreating" scandals including data from Cambridge Analytica had become tired break.
Read More : These investors control $ 3 billion worth of Facebook shares ̵
In response to SEC's proposal, Facebook called for investors to vote.
"We believe that our Board of Directors operates effectively under its current structure and that the current structure provides adequate regulatory protection," said Facebook.
"We do not believe that requiring the chairman to be independent provides a noticeably better focus and performance, and instead can cause inefficiencies in board, management and relationships." Getty
The chance that it will become reality is extremely low, even though it is supported by investors who are around 3.
This is due to the dual stock structure of Facebook. Class B shares have ten times the voting rights of Class A shares, and Zuckerberg owns more than 75% of Class B shares, giving it more than half of the voting rights in Facebook.
Breaking the Share Structure
Zuckerberg's weighty power is the reason shareholders' shareholders want to abolish the share structure. At the annual investors' conference, they have the opportunity to vote on a proposal calling for the introduction of "fair and appropriate mechanisms for removing disproportionate rights of Class B shareholders".
He said, "Wrong news, electoral disruptions and threats to our democracy – Shareholders need more than a denial, a distraction and delay – we're asking shareholders to vote for a recapitalization plan for all outstanding shares, one vote per share
It is unclear which investor made the proposal, but Facebook is again calling for shareholders to be recalled, as they have done in the past five annual meetings. "We believe that our capital structure is in the best interests of our shareholders and that our current corporate governance structure is sound and effective," he said.
Facebook will almost certainly find its way. However, the two investor proposals show that shareholders are not satisfied after one year before hell. It also shows that investors continue to believe that Zuckerberg has too much power.