Categories: Technology

Shareholders Back Proposal To Remove Mark Zuckerberg As Chairman

SAN JOSE, CA - APRIL 18: Facebook CEO Mark Zuckerberg delivers the keynote address at Facebook's F8 Developer Conference on April 18, 2017 at McEnery Convention Center in San Jose, California. The conference will explore Facebook's new technology initiatives and products. (Photo by Justin Sullivan/Getty Images)

Shareholders have backed a proposal to remove Chief Executive Officer Mark Zuckerberg as chairman.

According to a report by NBC, state treasurers from Illinois, Rhode Island and Pennsylvania, and New York City Comptroller Scott Stringer, co-filed the proposal. They joined hedge fund Trillium Asset Management, which bought it to the table in June.

The proposal, set to be voted on at the company’s annual shareholder meeting in May 2019, is asking Facebook’s board to make the role of board chair an independent position. “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,” Stringer said.

The proposal said lack of independent board chair and oversight has contributed to Facebook “mishandling” a number of severe controversies, including Russian meddling in U.S. elections and the Cambridge Analytica data leak.

Zuckerberg has about 60 percent voting power, according to a filing in April. Previous efforts to remove Zuckerberg as chairman have failed. The New York City Pension Funds owned about 4.5 million Facebook shares as of July 31.

The Pennsylvania Treasury holds 38,737 shares of the company, according to a spokeswoman. Trillium holds 53,000 shares.