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How does the board hold Zuckerberg or anyone loyal to him accountable when he controls >50% of shares? Zuckerberg and his lieutenants can do almost anything the
by claudeganon 7y ago
How does the board hold Zuckerberg or anyone loyal to him accountable when he controls >50% of shares? Zuckerberg and his lieutenants can do almost anything they wants as long as he doesn’t tank the stock price or bring about a pile on of investor lawsuits.
- staticassertion 7y agoThere are legal protections for minority shareholders and boards of directors. Owning > 50% of the stock buys you lots of control, but not total control. Boards do remove CEOs all the time.
- mygo 7y ago> Boards do remove CEOs all the time. The same ones that they either hired or executed a coup on. The majority shareholder has a good chance of remaining as CEO if he is proactive enough and stacks the board in his favor over time. It’s a chess game.
- staticassertion 7y agoAll the time? edit: To your post-edited comment, yes, it's a strategy game. There are lots of ways to avoid getting ousted as a CEO.