Mark zuckerbergs audacious plan to control facebook as he sells his stock, explained

Will Zuckerberg control Facebook

The company’s quarterly revenues have grown by more than 50 percent over the last year – an impressive achievement for a company of Facebook’s size. Facebook stock price is about 90 times its annual earnings, suggesting that Wall Street expects the company to continue outperforming other companies of its size.

Zuckerberg believes Facebook’s success has been enabled by Facebook’s unusual corporate structure, which gives him permanent and near-total control over the company he founded – despite owning fewer than 18 percent of Facebook shares.

You might think Facebook shareholders would get nervous about the prospect of Zuckerberg having total control of Facebook – with no accountability to other shareholders – even as his financial stake in the company dwindles.

The result: Zuckerberg owns just 18 percent of Facebook shares but controls 56 percent of the company’s voting rights, giving him the right to hand-pick the board of directors that, in turn, selects the CEO.

Source: Mark Zuckerberg’s audacious plan to control Facebook as he sells his stock, explained – Vox



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