Comment by oldsklgdfth
5 hours ago
I sometimes wonder how he's still CEO.
Other than ad revenue, the company hasn't had any big wins. VR didn't take off. Metaverse didn't take off. AI models didn't take off. All multi-billion dollar ventures. Any other board would have sacked him by now.
He can't be fired as CEO due to the way he set up the company (Class A and Class B stocks, Class A worth 1 vote, Class B worth 10 votes, he owns like 90% of Class B stock)
> wonder how he's still CEO.
it's because he controls the board by being the majority voting shareholder.
This is what happens when the gov't decides that it is legal for share classes with different voting rights. It ensures that you can sell equity to obtain money, without actually giving up control of said company at all. In theory, buyers would discount the sold equity due to this, but in practice, they don't (esp. if they're retail buyers).
Thanks for clearing that up. One less thing to sort out.
Interesting consequence.
EDIT: Initially, this is nuts. How can I give "own" part of a company and not have a say. Sounds like a silent partner scheme. Looks like this a per state thing.
There is this ruling Business Roundtable v. SEC (1990) that strikes down an SEC rule that prevented corps from going public if they didn't follow "one-share-one-vote".
Other than making buttloads of money, what has he accomplished?
If that’s your only criterion then you must be really upset that El Chapo is in the jail instead of making buttloads of money for his cartel
Fair. Meta seems to be as an advertisement utility, not really a tech company that is taking said buttloads and breaking into new areas.
In my mind, eventually it has the same fate as twitter? KTLO ops for printing money.
Oh, like the video metrics scandal? Or how their ads are shown to more people in an area than physically exist?
Of course the counter-argument is "makes money". That first of all doesn't make a good CEO (if you put no money into maintaining your site, for example), second of all it ignores all the fraud
> I sometimes wonder how he's still CEO.
Because of the existence of Class B shares.