She said that Mark Zuckerberg’s role is very unusual in the technology industry, there is no company as powerful as Facebook that is subject to such unilateral control. “No one can hold Mark Zuckerberg accountable at the moment, except himself,” she concluded.
Mark Zuckerberg is the final voice making all important decisions for the whole business
Follow Business Insider, Mark Zuckerberg is a key figure of Facebook, is the final voice making all important decisions for the whole business. However, many experts fear that Zuckerberg’s control of three important social networks Facebook, Instagram and WhatsApp will have a negative impact on the lives of millions of others.
“It’s not an exaggeration to say that Mark Zuckerberg is the most powerful person walking on the face of the earth, and I think the kind of power held by one person is not a good idea,” said Whitney Tilson, CEO of Empire Financial Research.
It’s not uncommon for the founder to take the majority control of the company, especially in the tech world. Google founders Sergey Brin and Larry Page, even though they left the CEO position in 2019, are still on the board of directors, holding the majority of voting rights.
According to Chris Haynes – associate professor of international affairs and political science at the University of New Haven (USA), giving control to the only person has the advantage of helping the company grow faster, do not need to go through the opinions of many members of the board of directors to make decisions,
Advocates of this mechanism argue that leaders can focus on long-term success, undistracted by short-term pressures.
But like a double-edged sword, power concentrated in one person will slow the company down at some point. Investors who view Mark Zuckerberg as “potentially risky” may unilaterally make decisions that harm their wealth.
Ex-employees reveal that Facebook CEO holds more than 55% of voting shares
Although free from immediate concerns, companies with centralized power will harm society and investors, and even create great volatility.
“You’re seeing that in the case of Facebook,” Haynes said.
Joy Poole – a former Facebook employee working at the consulting firm Emergence said that lawmakers should regulate the number of voting shares that the CEO can hold in the company.
However, the problem will not be solved even if Mark Zuckerberg holds less than 49% control.
According to Whitney Tilson, the best way is for the US Securities and Exchange Commission (SEC) to step in and investigate the allegations surrounding Facebook defrauding investors by not disclosing research on the negative effects of the network. society towards children, the SEC could possibly order Zuckerberg to step down.
“I think this is the ultimate way to pass his voting shares,” explained Empire Financial Research CEO. But even this idea is unlikely to materialize.