which’s because the tech giant has dual-class shares. Facebook’s Class B shares are controlled by Zuckerberg as well as a smaller group of insiders as well as have 10 votes per share. Class A shares only have one vote per share. The end result can be which Zuckerberg as well as those insiders control almost 70 percent of the voting shares in Facebook.
CalSTRS took on the issue in a recent op-ed inside the Financial Times. CalSTRS portfolio manager Aeisha Mastagni wrote, “Why does Mr. Zuckerberg need the entrenchment factor of a dual-class structure? can be which because he does not want governance to evolve with the rest of his company? If so, which American dream can be today akin to a dictatorship.”
A Facebook spokesperson told CNBC, “Our board of directors believes which our capital structure contributes to our stability as well as insulates our board of directors as well as management coming from short-term pressures, which allows them to focus on our mission as well as long-term success.”
CalSTRS, which manages $224.4 billion in assets, owns $650.4 million in Facebook shares as of year-end 2017.
Ailman told CNBC, “If you want to use various other people’s money they need to have a chance to have some say in how the business can be run by electing a board of directors, holding management accountable.”
“One individual person can’t make all the right decisions. as well as we’ve seen some cracks in Facebook’s management, especially which year,” he added.
The most notable “crack” was the data scandal involving Cambridge Analytica, which can be accused of improperly gaining access to 50 million Facebook profiles before the 2016 election. Cambridge Analytica has called the allegations “false.”
which “lack of poor oversight as well as management” on the part of Facebook can be the reason Ailman deleted his Facebook account in April, he said.
He told CNBC which he has not signed back up. “I do not plan on joining Facebook for a long time.”
which said, CalSTRS has no plan to dump its Facebook shares.
“We’re in which for the long haul,” he said. Instead, they want to start a conversation.
“Something like dual-class shares can be something we want to stop dead in its tracks today as well as try to get Silicon Valley to wake up as well as see more democracy in their companies as well as more of an accountability in management,” Ailman said.
— CNBC’s Fred Imbert contributed to which report.