Facebook’s board has recently proposed removing CEO Mark Zuckerberg’s majority voting control if the social media giant’s founder decided at some point in the future to exit management.
In a filing with the US Securities and Exchanges Commission (SEC), the Facebook’s board said it will ask shareholders to vote on a proposal to convert Zuckerberg’s Class B shares into Class A shares if he exits the leadership position. The move was proposed in late April in a regulatory filing.
On June 2nd, Zuckerberg owned around 4 million Class A shares and 419 Class B shares, representing 53.8 percent of outstanding voting power and 14.8 percent of total outstanding economic interests.
The proposes move, which will be voted on at Facebook’s AGM on June 20th, is designed to ensure a future Facebook chief’s powers aren’t limited, say the board.
“These new terms thus ensure that we will not remain a founder-controlled company after we cease to be a founder-led company”, the board said in the filing.
Currently, Zuckerberg is allowed to hold Class B shares and exercise majority voting even after leaving the company. Zuckerberg would also be able to pass his Class B shares and majority voting control to descendants after his death.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.