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There are a ton of comments suggesting the non-binding vote will not change behavior. I want to throw some light on the opposite side: Zuk has a strong incenti
by nknealk 7y ago
There are a ton of comments suggesting the non-binding vote will not change behavior. I want to throw some light on the opposite side:
Zuk has a strong incentive to listen to his shareholders even if he doesn't have to. If he ignores them, shareholders are likely to sell their shares driving the price down. This (1) reduces Zuk's overall wealth since much of it is locked up in Facebook equity, (2) reduces the total compensation of many Facebook employees who receive options or RSUs thereby making retention harder, (3) makes recruiting engineering talent harder because few people want to join a sinking ship, and (4) reduces the ability of the company to raise capital in public markets (unlikely a significant consequence for Facebook as they throw off a lot of operating cashflow)
So yes, Zuk voted to not fire himself. That doesn't mean he can ignore his shareholders without consequence.