Couldn’t have happened to a better company.
Facebook on Thursday posted the largest one-day loss in market value by any company in U.S. stock market history after releasing a disastrous quarterly report.
The social media giant’s market capitalization plummeted by $119 billion to $510 billion as its stock price plummeted by 19 percent. At Wednesday’s close, Facebook’s market cap had totaled nearly $630 billion, according to FactSet.
No company in the history of the U.S. stock market has ever lost $100 billion in market value in just one day, but two came close.
Source: Facebook’s $100 billion-plus rout is the biggest loss in stock market history
Shareholders are trying to fire Mark Zuckerberg as chairman of Facebook because of the social media giant’s ‘mishandling’ of recent scandals, including the Cambridge Analytica data saga, Russian meddling in the US election and fake news.
Investment company Trillium Asset Management, who has about $11 million in Facebook stock, filed a proposal on Wednesday to break up Zuckerberg’s role as both chairman and CEO, Business Insider reports.
The proposal argues that shareholders are unable to check Zuckerberg’s power given he holds roughly 60 percent of Facebook’s voting shares as both chair and CEO.
‘A CEO who also serves as chair can exert excessive influence on the board and its agenda, weakening the board’s oversight of management,’ the proposal states.
‘Separating the chair and CEO positions reduces this conflict, and an independent chair provides the clearest separation of power between the CEO and the rest of the board.’
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