Facebook started in a dorm room by Mark Zuckerberg but has exponentially grown into a behemoth online social network. The company is now taking steps to guarantee that the top position will be held by its founder for a long time.
On Wednesday, the social media network offered a new proposal for a new class of stocks they call C shares. Some observers believe that this move is designed to keep Zuckerberg in charge of the company.
These shares will enable him to preserve his voting power in the company, even as he starts to give away a major portion of his stocks for charitable reasons.
The social media company said the initiative was "not a traditional governance model," but it qualified its statement by saying "Facebook was not built to be a traditional company."
It is now requesting its shareholders to approve the establishment of a new class of stock designed to "encourage Mr. Zuckerberg to remain in an active leadership role at Facebook," said the company in a statement.
If this proposal is approved, it is more than likely that Zuckerberg will remain as the main force behind the social network for a long time, with respect to ownership as well as leadership.
There is no indication that he has any plans to leave the company early, since this new type of stocks will enable him to maintain "founder control" of the firm even if his quantity of shares goes down.
"If this proposal goes into effect, we'll get to keep improving your Facebook experience the way we do today," said Zuckerberg in a statement. "And over the long term, I think you'll have better services and be part of a stronger community as a result," he added.
This proposal is typical of the Silicon Valley ethos where founders of companies remain supreme and in which structures of corporations were modified so that these founders can have their way.
