Angry Facebook investors grilled Mark Zuckerberg at a shareholder meeting this week, warning the company risked becoming a ‘corporate dictatorship’.
The billionaire executive was urged to ‘take a page from history’ and ’emulate Washington, not Putin’, during the heated encounter.
One investor argued that Facebook’s recent Cambridge Analytica data scandal was tantamount to a human rights violation.
The group’s remarks were in response to a number of recent Facebook controversies, including Russian interference in the US presidential election, the spread of fake news and concerns over user privacy.
Angry Facebook investors grilled Mark Zuckerberg at a shareholder meeting this week, warning the company risked becoming a ‘corporate dictatorship’. One investor argued that Facebook’s recent data scandal was tantamount to a human rights violation (file photo)
Shareholders at the meeting in Menlo Park, California, which was webcast, also targeted Facebook’s tax planning and refusal to release reports on pay by gender.
Will Lana of Trillium Asset Management said that his firm had identified ‘at least 15 distinct controversies’ facing the company.
He argued for a change to the board’s approach to risk management to avoid further scandal.
‘The proof of the current structure’s inadequacies is on display in the current headlines,’ Lana said.
Facebook risked becoming a ‘corporate dictatorship,’ James McRitchie, another of the company’s investors, told Zuckerberg.
‘Mr Zuckerberg, take a page from history,’ McRitchie added. ‘Emulate George Washington, not Vladimir Putin.’
Zuckerberg was urged to ‘take a page from history’ and ‘Emulate Washington, not Putin’ during a shareholder meeting on Thursday (file photo)
A plane pulling a banner that read ‘YOU BROKE DEMOCRACY’ flew over during the meeting.
The aircraft advertised Freedom From Facebook, a group of privacy activists that are pushing the US Federal Trade Commission to split up the company.
Investors also set their sights on Facebook’s recent data scandal, which eventually forced Zuckerberg to speak in front of members of Congress, as well as EU officials.
It was revealed in March that Facebook had handed over the private data of millions users to the now-defunct political consultancy firm Cambridge Analytica.
WHAT IS THE CAMBRIDGE ANALYTICA SCANDAL?
Communications firms Cambridge Analytica has offices in London, New York, Washington, as well as Brazil and Malaysia.
The company boasts it can ‘find your voters and move them to action’ through data-driven campaigns and a team that includes data scientists and behavioural psychologists.
‘Within the United States alone, we have played a pivotal role in winning presidential races as well as congressional and state elections,’ with data on more than 230 million American voters, Cambridge Analytica claims on its website.
The company profited from a feature that meant apps could ask for permission to access your own data as well as the data of all your Facebook friends.
The data firm suspended its chief executive, Alexander Nix (pictured), after recordings emerged of him making a series of controversial claims, including boasts that Cambridge Analytica had a pivotal role in the election of Donald Trump
This meant the company was able to mine the information of 87 million Facebook users even though just 270,000 people gave them permission to do so.
This was designed to help them create software that can predict and influence voters’ choices at the ballot box.
The data firm suspended its chief executive, Alexander Nix, after recordings emerged of him making a series of controversial claims, including boasts that Cambridge Analytica had a pivotal role in the election of Donald Trump.
This information is said to have been used to help the Brexit campaign in the UK.
The company profited from a feature that meant apps could ask for permission to access your own data as well as the data of all your Facebook friends.
This meant it was able to mine the information of 87 million Facebook users even though just 270,000 people gave them permission to do so.
Christine Jantz, chief investment officer at Northstar Asset Management, another Facebook investor said Thursday: ‘If privacy is a human right … then we contend that Facebook’s poor stewardship of user data is tantamount to a human rights violation.’
Zuckerberg responded by reiterating the company’s previous plans to verify the identity of advertisers and to increase security spending.
‘We’re going to make sure that we take a broader view of our responsibility,’ Zuckerberg said.
‘At the same time we also feel a responsibility to keep building the next generation of new experiences that are going help us all connect in meaningful new ways.’
He also promised the platform would be more transparent in its efforts in future, such as putting out reports on fake accounts.
‘[This is a] good way to have people in the community judge our process toward this and hold us accountable,’ Zuckerberg added.
Facebook executives said the firm rejected all shareholder proposals at the meeting, while all eight of its director nominees were elected, according to Reuters.
Proposals included calls for a new voting structure and greater oversight and transparency.
It remains unclear to what extent outside shareholders sided with Facebook and Zuckerberg.
He and other insiders control about 60 per cent of votes at the company.
Following the fiery meeting, shares of Facebook rose 2.19 per cent on Thursday to close at $191.78 (£144.09) per share.
Experts suggested the jump was a sign investors don’t expect Facebook’s recent controversies to have a negative impact long term.
It may also reflect investors buying Facebook stock while it is relatively low following a plummet in share value in March and April.