Could Facebook fire Zuckerberg?
SAN FRANCISCO — As Facebook’s stock price sinks and criticism mounts, an emerging parlor game in Silicon Valley is speculation on the job status of Facebook CEO Mark Zuckerberg. Shares of the social-networking company dipped 4 percent Friday to $19, half the May 18 IPO value, before closing at $19.05.
So far, there are no signs of open revolt among major Facebook shareholders beyond a few class-action lawsuits over its botched initial public offering. But some openly wonder if it might be time for Zuckerberg to step aside as CEO.
“He is unquestionably a genius at starting a company, but that does not necessarily translate into running a public company,” says securities attorney Andrew Stoltmann. If Facebook’s problems persist, its board of directors may consider a change at the top, he says.
Facebook isn’t the first company to struggle in the transition from start-up to public company. Others, such as Apple and Yahoo, eventually pushed aside founders in favor of adult supervision before bringing their founders back.
But for many, the notion of Zuckerberg being forced out is patently absurd. As Facebook’s largest shareholder, with 20.7 percent, and its resident visionary, Zuckerberg has the loudest say in his future at the company.
“He is safe because Facebook would not be Facebook without him,” says Duncan Davidson, managing director of Bullpen Capital.
Mistakes were made by “grown-ups,” Davidson says, like the bankers for Facebook who should have known better when the underlying projections changed at the last minute, and Nasdaq officials, who should have held the deal a week when they encountered a catastrophic software error. “The core problem is that Facebook should have gone public in 2009 when the public investor would have caught the knee of the curve of value creation,” he says.
In Chief Operating Officer Sheryl Sandberg and CFO David Ebersman, Facebook already has adult supervision, contends Wedbush Securities analyst Michael Pachter. “The only thing that Facebook has done that is wrong is they issued way too many shares and they unlocked way too many shares and flooded the market,” Pachter says. “I think they’re running the company fine.”
Dear Fixer: My brother passed away in March. A week later, I paid his final cable bill to Comcast, for $131.72. I wrote a check from my account.
At the time, I did not realize that his cable service was billed in advance, so essentially I was paying for something that would never be used.
I canceled his service and was told I had to return his equipment, which I did. I have a receipt for that. They told me that after they deducted his balance, I would get a refund of $78.86.
They did send me a check for $78.86, but it is in my brother’s name, and my bank will not accept it.
I spoke to a couple of Comcast reps who said they can only issue the check in my brother’s name. He didn’t pay the bill — I did. I gave them a copy of his death certificate, but haven’t heard anything more.
Joeann Hanna, Burr Ridge
Dear Joeann: Our sincere condolences on the loss of your brother, Albert.
And what a good sister you are, wanting to tie up loose ends like this.
We took this to Comcast spokeswoman Angelynne Amores, who agreed that there must be some way to get your money to you. She got in touch with you to apologize, then she ran interference with the billing folks to make sure a new check will be issued in your name.
Medical mixup
Dear Fixer: We paid a medical lab bill promptly in March, yet we keep getting bills in the mail. Twice, we provided the billing service with a bank copy of the canceled check, which proves we paid them.
Now it’s gone to a collection agency and I am worried that our good credit will be affected by this $33.18 mistake.
Dear Steve: Your first mistake was thinking, Gee, this is such a ridiculously simple thing, it’ll be a cinch to resolve.
We see that all too often.
Hey, everyone — mistakes happen, so it’s a good idea to have a peek at your credit report now and then. Federal law entitles consumers to one free report from each of the three major credit reporting bureaus every 12 months. Go to the official site,
and follow the prompts for the free reports. You will not have to buy anything and you don’t have provide a credit card number, unlike on some sound-alike websites.
He’s my relative, but . . .
The Fixer hears a lot of stories about relatives who want help with co-signing a loan, or people who share bank accounts or safe deposit boxes with others.
Is this wise? Well, it depends why you’re doing it. If you’re just feeling sorry for your sketchy cousin who can’t get a car loan, you might want to stop and reconsider.
The FDIC has some good info for anyone in this fix. For example, did you know that adding relatives to a joint savings account could affect how much you can recoup in FDIC insurance if there’s a catastrophe with the bank?
And if you share a credit card account or have co-signed a loan, you could be on the hook for everything — including late fees and collection costs — if your relative takes off.
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