Belfast Telegraph

Attack on Facebook float plan

By Richard Blackden

Facebook founder Mark Zuckerberg has been accused of "hubris" in a strongly worded attack by one of America's leading shareholder groups on the social network's plans for a multi-billion dollar flotation.

ISS, which advises more than 1,500 institutional investors on corporate governance, criticised Mr Zuckerberg's plan to use a dual share structure to maintain control of voting rights at Facebook even after the flotation.

The prospectus published last month by Facebook disclosed that the 27-year-old will control almost 57% of voting rights on all key decisions at the company.

"This is a governance profile with a defence against everything (except) hubris," ISS said in a report sent to clients yesterday.

"This IPO event itself presents a Hobson's choice: accept governance structures which diminish shareholder rights and board accountability, or miss out on what appears to be one of the hottest business models of the internet age."


From Belfast Telegraph