Facebook shareholders shoot down ‘one share, one vote’ proposal

12 Jun, 2015 7:35 am

SAN FRANCISCO – A proposal to give Facebook Inc’s (FB.O) stockholders one vote per share was rejected at the company’s annual meeting, according to preliminary results.

The stockholder proposal was filed to change Facebook’s voting practices.

Ordinary investors own Class A common shares, which provide one vote per share, but Facebook’s Class B shares are worth 10 votes each.

The holders of Facebook’s Class B common stock hold about 74 percent of the voting power, with Facebook founder Mark Zuckerberg personally controlling 55 percent, according to the stockholder proposal. (bit.ly/1FbGX6N)

Facebook’s eight directors, including Netflix Inc (NFLX.O) Chief Executive Reed Hastings and Facebook’s chief operating officer, Sheryl Sandberg, were re-elected.

Civil rights activist Reverend Jesse Jackson made an appearance at the meeting, asking for more diversity in the workplace.

The technology industry has long been plagued not just by allegations of a gender gap but also by a broad lack of inclusiveness that affects minorities as well.

Preliminary results showed that all shareholder proposals were defeated at the meeting, including those to make the social media giant issue an annual sustainability report and report on its process of identifying human rights risks.

Facebook’s shares were marginally down at $82.10 in afternoon trading on the Nasdaq. – REUTERS

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