Facebook shares closed higher in the US Wednesday, as four major shareholders have backed a proposal to remove Mark Zuckerberg as Chairman of the social media platform. The move is mainly symbolic as Zuckerberg, who is also CEO of the tech firm, maintains some 60% of the company voting rights.
Facebook shares ended the US Wednesday session 0.40% higher at $159.42. However, the stock is currently trading in the red, in out of hours activity.
Reports suggest that four major investment Funds with holdings in Facebook, have jointly called for Zuckerberg to be replaced as chairman of the business. In the US, the same person can hold the positions of CEO and Chairman.
The same call was made in 2017, although it failed to receive much support – only three of the four Funds who now support the change voted in favour, last year. The fresh proposal was co-filed by State treasurers from Illinois, Rhode Island and Pennsylvania, and New York City Comptroller.
“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 told CNBC, in a statement regarding the move.
However, while the likelihood of this change occurring remains slim, it is still regarded as a relevant move, if only to highlight the ongoing problems at Facebook and suggesting at least one option to help solve them.
Facebook can use data collected via Portal
Separately, following the release of Facebook’s new video calling system Portal, which was recently unveiled, fresh reports state that, contrary to the belief that personal data collected on Portal couldn’t be used to support targeted advertising, Facebook has said that it could be used in that way.
“We may use this [video all length] information to inform the ads we show you across our platforms. Other general usage data, such as aggregate usage of apps, etc., may also feed into the information that we use to serve ads,” a Facebook spokesperson said in an email to online publication, Recode.