Last Friday Facebook revealed that it would be dropping “a proposed reclassification of its stock that would have solidified Mark Zuckerberg’s control over the social network,” after a long struggle to make the move work. The move has been touted as “a victory for stockholders” by “Stuart Grant, a partner at the law firm Grant & Eisenhofer, who represented institutional Facebook investors in a lawsuit” against the move. Via nytimes.com
Mr. Zuckerberg maintains that he will have the ability to control company voting for some “20 years” going forward which should allay fears of instability from the companies failed stock reclassification. While this may hinder his consolidation of power over his company the move should not hinder his philanthropy:
The chief executive noted that because of Facebook’s strong stock performance, “I can fully fund our philanthropy,”
It will be interesting to see if Facebook makes any further attempts at improving their chief executive’s position in the future, but for now it looks like Mr. Zuckerberg is still fully in control.
To learn more, go to nytimes.com. If you liked this article, why not sign up for our free newsletter and get more updates delivered straight to your inbox?
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