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Mark Zuckerberg, chief executive officer and founder of Facebook Inc., listens during a joint hearing of the Senate Judiciary and Commerce Committees in Washington, D.C., U.S., on Tuesday, April 10, 2018.
Major Facebook investors, including public pension funds and state officials, are pushing for Mark Zuckerberg’s ouster as chairman of the company’s board.
The proposal is largely symbolic, since Zuckerberg holds absolute control of the board. But it comes at a difficult time for Facebook, as security breaches continue to plague the company and spur questions around corporate oversight.
“We need Facebook’s insular boardroom to make a serious commitment to addressing real risks – reputational, regulatory, and the risk to our democracy – that impact the company, its share owners, and ultimately the hard-earned pensions of thousands of New York City workers,” New York City Comptroller Scott Stringer said in a statement to CNBC.
Stringer joined a previous motion by asset manager Trillium in calling for Zuckerberg to step down.
“An independent board chair is essential to moving Facebook forward from this mess, and to reestablish trust with Americans and investors alike,” Stringer said.
Stringer oversees New York City’s $160 billion pension fund. State treasurers for Rhode Island, Illinois and Pennsylvania are also joining the motion, according to the Wall Street Journal.
Similar motions to reclaim voting power have been made before, though none have passed. The latest proposal will be voted on at Facebook’s next shareholder meeting next year.
Facebook was not immediately available to comment.