Public Fund Pirates Plot a CEO Coup at Facebook
On a typical Wednesday, a coalition of big‑money state treasurers decided it was time to put a friendly piece of paper on Mark Zuckerberg’s résumé. They’re trying to wipe him from the chairman seat at Facebook Inc. – a move that has the private equestrian circus of big investors watching closely.
Who’s on the 1‑st‑class roster?
- Illinois State Treasurer Michael Frerichs – 190,712 shares in the mix.
- Rhode Island State Treasurer Seth Magaziner – 168,230 shares.
- New York City Comptroller Scott Stringer – a sprawling 4.5 million shares in the NYC pension fund.
- Pennsylvania Treasury – 38,737 shares.
- Alongside the trio is Trillium Asset Management, a 53,000‑share activist investor.
Why the “chair” drama?
Facebook’s biggest doctors, the love‑hate stock funds, have a history of waving the “independent chair” flag. In 2017, a similar motion got a slim majority of outside investors but was eventually flattened like a pancake by Zuckerberg’s 60% voting clout. Now, the public funds say the old request is still worth filing – if nothing else, to stir up conversation and shine a spotlight on the platform’s high‑profile woes.
What can a new chair do?
Think of it as a “fresh pair of eyes” on board decisions – something investors hope will reduce go‑of noise, from data misuse to FOMO‑filled fake news. Current shareholder meeting decree (planned for May 2019) argues it could help tighten corporate governance, align more with global corporate best practices, and perhaps keep those mood‑swinging share prices from rattling.
Pro‑1 vs. Pro‑2: the 2017 split
- Vanguard Total Stock Market Index Fund – voted against.
- Fidelity Contrafund – also voted against.
- American Funds Growth Fund of America – voted for.
Public fund leaders say the 2017 proposal got plenty of outside investor echoes, but big players like Vanguard and Fidelity had a different pandemic (a different pandemic). They argue Zuckerberg’s two‑seat triumph, plus their own offshore collateral, keeps the board pretty unshakable.
Facebook’s side of the pitch
Facebook’s spokesperson refused a comment, but executives have cautioned that opening a free‑wheeling independent chair could “create uncertainty, confusion, and inefficiency in board and management function and relations.” Still, Zuckerberg’s 60% voting strength tells us the chessboard is skewed.
What the numbers say
Facebook shares have taken a rocky ride this year, with a 10% dip from the year‑start high at $217.50 on July 25. As the market circles around $159.42, investor sentiment swings like a jigsaw puzzle. The public funds’ proposal might be the last front‑line move to cut the plot lines or encourage a new narrative.
In the end, whether Zuckerberg stays or steps in line is a question the next board’s gavel will break. For now, the public funds keep the drum rolling, using every press release and unsettling statement to build tension in the “court of public opinion.”
