Attack on Facebook float plan
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."