SAN FRANCISCO — Mark Zuckerberg would not retain his iron grip on Facebook should he leave the giant social network under a proposal from the board of directors.
The Facebook board is asking shareholders to vote on the proposal that would deny Zuckerberg voting control if he is no longer running Facebook at the annual meeting on June 20. The proposal would ensure "that we will not remain a founder-controlled company after we cease to be a founder-led company," the board said in a filing.
Under the current agreement, Zuckerberg would be able to exercise voting control even if leaves the company. Zuckerberg would also be allowed to pass on those shares, and conceivably his majority voting control, to his descendants after he dies.
The succession planning, first disclosed in April, does not suggest Zuckerberg, 32, is planning on stepping down anytime soon. It's part of Facebook's plan to create a new class of nonvoting stock to aid Zuckerberg — while he's CEO — to retain control as he and wife Priscilla Chan give away 99% of their Facebook shares over their lifetime to philanthropic endeavors.
Facebook's board is proposing a new class of shares, a "C" class, that will have no voting rights. If the proposal is approved, the shares will be issued as a one-time dividend, two shares apiece to Class A and Class B class common stock holders. The Menlo Park, Calif., company announced the three-for-one stock split in April.
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