Four public investment fund officials on Wednesday joined a call to install an independent chairman at Facebook, saying the move would improve governance and accountability at the world's biggest social network. The state treasurers of Illinois, Rhode Island and Pennsylvania and the New York City comptroller - all of whom hold Facebook shares - endorsed the proposal made earlier this year by Trillium Asset management to separate the roles of chairman and chief executive now held by Mark Zuckerberg.
Trillium made the proposal in June, saying Facebook needs independent oversight following scandals over the hijacking of personal data on tens of millions of users, manipulation of the platform by foreign actors and the propagation of inflammatory rhetoric sparking violence in Myanmar, among other issues. "Facebook plays an outsized role in our society and our economy. They have a social and financial responsibility to be transparent - that's why we're demanding independence and accountability in the company's boardroom," said New York City Comptroller Scott Stringer in a statement released by Trillium.
Illinois State Treasurer Michael Frerichs added in the statement: "Facebook's governance structure continues to put its investors at risk. Now is the time for change. We need to see more accountability of Mark Zuckerberg to the board of directors to restore investor confidence and protect shareholder value."
Zuckerberg owns an estimated 17 percent of Facebook equity but a dual share class gives him a majority of voting shares, making it difficult to oppose him.
Trillium, formed as a fund focused on socially responsible investing, said an independent chair would bring Facebook into line with recommendations of corporate governance experts, and said it would make the proposal at the annual shareholder meeting in May 2019.