Thursday , August 11 2022

The two major threats to power Mark Zuckerberg: could he destroy a shareholder rebellion?



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No one else in Silicon Valley has as much absolute power over a technological giant. Mark Zuckerberg is co-founder, executive director, board chair and shareholder of Facebook, the most popular social network in the world. For years, few thought it a problem. But then, things started to go wrong.

"I know we don't have the exact reputation for privacy right now, to say it clearly," Zuckerberg said this week at the company's annual developers conference in San Jose, California, USA. United States.

He smiled awkwardly, but the audience didn't like it, because that reputation left angry consumers, raging politicians, conspiracy regulators and nervous investors.

Many think that if Zuckerberg should not look carefully if he can effectively sustain the number of jobs in his name.

And, as the United States as the US moves towards its next electoral cycle, presidential candidates insist that Zuckerberg's power is largely diluted.

Record a fine

Mark Zuckerberg at the developers conference this week in California.

Mark Zuckerberg said at his annual developers conference that Facebook does not have the best name for security.

After closed doors, Facebook and Federal Trade Commission USA. (FTC in English) in discussions.

That is believed the FTC is planning a record fine and Facebook, told investors last week, kept at least US $ 3,000 million to pay. The question is: What else could the regulator call?

"I believe that Facebook has systematically and aggressively violated consumer privacy," said Ashkan Soltani, a former technologist at the FTC, told the BBC.

And he said Facebook thought it was a necessary and affordable risk to grow its business as fast as it did.

"I think the company has prioritized growth at any cost" tSoltani confirmed.

The FTC is under great pressure to devise a punishment that can eventually be minimal. Even though If the fine were as high as US $ 5,000 million, as Facebook said it could be, that would only equate to a third of what it won in the first three months of this year alone.

According to newspaper publications Washington Post a Politicianthe key details will be taken into account when making the FTC's decision on the additional supervision.

Politico reported on Wednesday that the Food Technology Center is considering requiring Facebook to appoint a privacy officer in the company approved by the government, among other measures.

And Zuckerberg himself would be designated as the individual responsible for applying these changes, a step designed to make him personally responsible for any failure in the process.

Rebellion investors

Facebook logo

Some investors believe that Zuckerberg should steer from the aside to Facebook.

And then there is the pressure of the company's investors.

While the price of the stock has improved from the significant downturn during the Cambridge Analytica scandal, there are calls on Mark Zuckerberg to consider whether holding a chief executive and chair is too much, especially in a company in crisis.

A group of investors asked Zuckerberg to be replaced by an independent president, before the company's recent problems.

But there is no possibility that that vote will be approved, as the Facebook founder manages the majority of the votes in person.

Anyway, the vote could be seen as an opportunity for Zuckerberg to reflect on their rolessaid Jonas Kron of Trillium Asset Management, who led the organization.

"I think I should think seriously about (give up)."Kron said to the BBC.

"He has examples like those of Larry Page in Alphabet and Bill Gates in Microsoft about how he might not be the founder of the board."

"Maybe it's not an easy step, but it's important because it would benefit our shareholders, employees, consumers and communities worldwide using Facebook every day," he added. .

Facebook refused to comment for this article, and the BBC sent the official response that it gave to offer the shareholders.

"We believe that our current board structure looks after the interests of our shareholders, so our board of directors recommends that our shareholders vote against that proposal."

In 2015, Mark Zuckerberg had just had his first child with his wife Priscilla Chan and, at the same time, announced his intention to move gradually from Facebook's daily management.

With these problems going around, the conversion may have to happen sooner than Zuckerberg would have to expect.

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