Calls to wrestle power from the hands of Facebook CEO Mark Zuckerberg have officially begun. One New York pension fund boss is demanding the social network giant boost oversight by replacing Zuckerberg as Facebook’s chairman.
Advertisement - story continues below
Though New York City’s pension fund – which has about $1 billion invested in Facebook stock – doesn’t have the clout to unilaterally push for change, Stringer said he’s pushing for a shakeup on the company’s board of directors. Specifically, Stringer wants Facebook CEO Mark Zuckerberg to relinquish his role as chairman, and hand the position over to an “independent” advisor.
“I think this is a wake-up call. This is a company that lost $50 billion after this scandal broke that’s not an insignificant amount of money even for Mark Zuckerberg – the value of the company has gone down and my job is to represent the firefighters, teachers, police officers, the people for whom we invest on their behalf. We thinkthere needs to be more independent board oversight I think there needs to be an independent chairman of the board.”
Federal investigators have begun probing Facebook’s use of personal data after reports surfaced that Cambridge Analytica ‘improperly gained access to the data of more than 50 million users.’
“We are aware of the issues that have been raised but cannot comment on whether we are investigating. We take any allegations of violations of our consent decrees very seriously as we did in 2012 in a privacy case involving Google,” a spokesman for the FTC said Tuesday.
A violation of the consent decree could carry a penalty of $40,000 per violation, which could mean a fine conservatively estimated to be “many millions of dollars in fines” for Facebook, The Washington Post reported over the weekend, citing a former FTC official.
“We reject any suggestion of violation of the consent decree. We respected the privacy settings that people had in place. Privacy and data protections are fundamental to every decision we make,” the social network giant said in a statement to the Washington Post.