June 10, 2019
Kleinberg Kaplan partner Christopher Davis was recently quoted in The Deal’s article addressing the amount of control Facebook CEO Mark Zuckerberg holds and the issues surrounding it.
The article titled, “Investors Urge Zuckerberg to Surrender Facebook Board Control,” explains how shareholders of Facebook are set to vote on whether Zuckerberg will remain chairman of the social media site or if an independent board chairman will replace him. However, due to the Facebook’s dual-class share structure, Zuckerberg is given considerable control, and the vote to replace him will likely fail. Still, with the increase of controversies Facebook has found itself in over the past year, “lack of independent oversight” has become a concern for its investors. Davis comments on the rise and relevance of dual-class structures and how something grand and multi-faceted would be needed as a replaceable solution.
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