Facebook receives more criticism from its investors
A number of Facebook's heavyweight investors have alleged that the social media giant's executives have historically ignored their concerns about governance, refused to engage in a dialogue with them and responded to their advice with indifference, according to a report by Financial News.
The investors have allegedly described Facebook's way of dealing with investors as "bizarre" and, according to one investor, the company does not consider its investor's views important.
Natasha Lamb, a managing partner at Arjuna Capital came forward to claim that it took multiple attempts before Facebook addressed the concerns Arjuna Capital had outlined regarding Facebook's gender pay gap. She also added: "It is not just us they are not engaging with. They are not engaging with any [investors]. I've engaged with a lot of companies and this is by far the most bizarre engagement I've ever had."
Lamb explained that she believed the issues stem from the governance structure of the company. Facebook's CEO Mark Zuckerberg controls around 60% of the voting shares, which has led to indifference toward other investors, she alleged.
The company has been facing increasing criticism from all directions and its investors have spoken up in recent months to criticize the company. In October, for the second time this year, a number of shareholders demanded Zuckerberg be removed as chairman due to the number of revelations regarding Facebook's involvement in a number of political scandals. Last week it was also accused of dominating social media but lacking accountability during a hearing which Zuckerberg chose not to attend.