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Even if they don't increase the fines, $5 billion fines on a routine basis start to severely piss off shareholders. No shareholder likes to watch a quarter of a
by adventured 7y ago
Even if they don't increase the fines, $5 billion fines on a routine basis start to severely piss off shareholders. No shareholder likes to watch a quarter of a company's profit regularly getting vaporized. That is especially true when your sales and earnings growth rates have plunged as in the case of Facebook (increasingly a mature business).
Now why does any of that matter when Zuckerberg is nearly impossible to remove? Because it risks suppressing the share value, which will (further) harm Facebook's ability to attract the best talent. SV companies like Facebook universally believe they sink or swim by the talent they retain and can recruit.
If Facebook becomes enough of a mess, everyone turns on Zuckerberg, and he's done. The trust entirely goes, the belief in his leadership goes, the board relationships sour, talent doesn't want to work for him, executives don't want to work for him. It means in real terms he can no longer actually lead the company (morally, functionally), regardless of his voting position.