Facebook shareholder proposals voted down

During an annual meeting Thursday, Facebook shareholders fixed a spotlight on some of the social network’s most vexing issues, including fake news and questions of gender and racial inequities at the company.

But thanks to Mark Zuckerberg’s overwhelming control over the company he founded, proposals that would have directly addressed those issues failed. It was no surprise. Zuckerberg has controlled the majority of voting shares since the company went public, thanks to a dual-class share structure that gives some shareholders no votes and leaves Zuckerberg with 56 percent, despite his ownership of only 14 percent of the company’s stock.

Natasha Lamb, an investor who spoke to shareholders and Facebook leaders at Thursday’s meeting, said she knew what she was up against, but hoped the measures would spark a conversation about how Facebook can be a more responsible company for its users and employees.

“Investors expect quantitative, transparent and honest disclosures and goals,” said Lamb, managing partner of investment firm Arjuna Capital. “Employees expect a new level of structural support that addresses root causes (of pay inequity and) supports fair negotiation, promotion and ultimately equal pay.”

Facebook’s board of directors, headed by Zuckerberg, opposed all three measures: to produce annual reports on Facebook’s strategy on hate speech and misleading or made-up news, to disclose the company’s pay data by race and gender, and to lessen Zuckerberg’s power by splitting up the roles of CEO and chairman of the board.

Arjuna Capital spearheaded the pay-inequity proposal. The Baldwin Bros. investment firm joined it in backing the fake-news measure.

Last month, a report, published by nonprofit Open Mic, which takes up social issues on behalf of investors, recommended that Facebook and Alphabet, parent of the Google search engine and YouTube video site, release annual assessments of the impact of propaganda, fake news and hate speech, as well as what they’re doing to address those issues.

“Mr. Zuckerberg, you say you want people to be safe on the platform,” said a shareholder, who did not identify herself, during a question-andanswer segment of the meeting. “If safety decisions are being made by minimally trained moderators ... it’s no wonder users feel unsafe and targeted by hate speech.”

This was the second year a request that Facebook publish a report on gender-linked pay inequities was put to a vote and failed. Facebook officials told shareholders that the company is already reviewing its employment practices and has publicly touted its commitment to diversity.

Preliminary vote counts on the failed proposals were not immediately available, though Facebook will disclose final numbers in a report to the Securities and Exchange Commission.