Why can’t Mark Zuckerberg be fired as CEO of Meta?

Mark Zuckerberg is not going anywhere. Despite growing opposition to the multi-billion dollar bet on the metaverse, Meta’s CEO has structured his company in such a way that it’s almost impossible for him to step down from his role as CEO unless he wants to.

Why can’t Mark Zuckerberg be fired?

Meta is made up of dual-class shares, meaning regular shareholders own one class of shares, Class A, while Zuckerberg and a small circle of close associates own Class B.

Class B share holders have 10 votes per share, while Class A holders only have one vote, meaning Zuckerberg and other Class B shareholders are essentially untouchable.

Meta’s CEO owns 90% of the company’s class B shares, enough to single-handedly maintain control of the company. This makes him one of the most powerful executives on the entire planet.

Is there an alternative?

according to account Insidersupporters of dual-class structures argue “that such control is desirable because it allows charismatic and visionary founders and entrepreneurs to execute their vision without having to worry unduly about stock market performance,” according to a report by the CFA Institute of 2018 on the subject.

Jay Ritter, a finance professor at the University of Florida, said this logic applied to stock investors. Goal. “Until this year, Facebook stock had done very well, which is one of the reasons investors have been willing to buy shares with lower voting rights,” he said.

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It should be noted that during the last 12 months Facebook’s parent company has lost 61% of its value, this being the biggest decline among tech giant stocks. Many investors have become frustrated with the Meta CEO’s plans to spend, and likely lose, even more money trying to create the metaverse from scratch. However, the truth is that they do not have many options at their fingertips.

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Why can’t Mark Zuckerberg be fired as CEO of Meta?