Activists launch campaign to remove Zuckerberg from Facebook board | TheHill

Two activist groups on Monday launched a campaign to oust CEO Mark Zuckerberg from Facebook’s board of directors, arguing his “sweeping” control of the company presents a barrier to civil rights and privacy reform. Digital civil rights group Color of Change and Majority Action, a corporate accountability organization, told the Securities and Exchange Commission that they will be urging Facebook shareholders to…

MSCI indexes will not restrict stocks that deny shareholders a vote | Reuters

Index provider MSCI Inc (MSCI.N) said on Tuesday it would allow companies that give shareholders unequal voting rights to remain on its current equity indexes, backing down from an earlier proposal that would have reduced exposure to such companies.But MSCI, whose indexes guide hundreds of billions of dollars in assets, said it would launch a…

A huge pension fund says Facebook is like a ‘dictatorship’ – The Washington Post

VEA Vice Chair Nell Minow is quoted in this Washington Post story about institutional investors challenging Facebook’s dual class structure. Nell Minow, vice chair of the governance consulting firm ValueEdge Advisers, said it is not unusual to see several institutional investors slam a company’s practices — especially if there’s a major governance question at stake….

CII on Unequal Voting Shares and Index Funds

The Council of Institutional Investors has written an exceptionally thoughtful reply to MSCI on the issue of dual class stock and index funds, in response to MSCI’s Consultation on the Treatment of Unequal Voting Structures in the MSCI Equity Indexes. The Council of Institutional Investors (CII) is committed to the alignment of economic rights and…

Dropbox IPO is yet another corporate governance low point

John Plender writes in the Financial Times about the awful trend of dual class IPOs from managers who want to have the benefits of access to public capital but maintain the benefits of private control. The big investment institutions are losing their battle against the use of dual-class share structures. That much is clear from…