//Should be placed in the header of every page. This won't fire any events

Facebook investors are calling for Mark Zuckerberg to give up ‘dictator’-like power

After widespread criticism of Facebook’s handling of election meddling, fake news and the Cambridge Analytica scandal, investors are growing increasingly frustrated at the company’s leadership.


After widespread criticism of Facebook’s handling of election meddling, fake news and the Cambridge Analytica scandal, investors are growing increasingly frustrated at the company’s leadership.

Now, some are openly calling for Zuckerberg to scale back his role in the company he created.

Business Insider recently interviewed six prominent independent Facebook investors who control a total of $3 billion in stock and “are trying to topple Mark Zuckerberg as chairman and tear up the company’s governance structure.”

One main point of contention is the way the company’s stock system is set up. Facebook uses a dual-class stock structure in which each class is valued the same monetarily but weighted differently in voting power. Facebook’s Class B stock has 10 times more voting power than the other.

Zuckerberg, who’s chairman and CEO of Facebook, controls more than 75 percent of Facebook’s Class B stock. This gives him nearly unchecked power over the company, enabling him to shoot down shareholder proposals, veto mergers, and vote directors on and off the board.

“We have concerns about the structure of the board that the company doesn't seem ready to address, which can lead to risks — reputational, regulatory, and otherwise,” New York City’s comptroller, Scott Stringer, who oversees about $895 million worth of Facebook shares through city pension funds, told Business Insider.


(Photo: JOHN THYS/AFP/Getty Images)

At Facebook’s annual shareholders meeting in May, James McRitchie, a shareholder activist, said the company was at risk of becoming a “corporate dictatorship.”

“Mr Zuckerberg, take a page from history,” he said. “Emulate George Washington, not Vladimir Putin.”

Another investor was forced to leave the room for shouting that “shareholder democracy is lacking at Facebook.”

Independent investors have called for Zuckerberg to step down as chairman and for Facebook to dissolve its dual-class stock structure. Neither have happened.

“The idea that there should be an autocrat in charge of a gigantic public company, which has billions of dollars of shareholder money invested in it, is an anachronism,” Patrick Doherty, the director of corporate governance at the office of the New York comptroller, told Business Insider. “It harks back to the 19th century when you had these robber barons who were autocrats and dictators.”

It’s unclear what the long-term consequences would be if Zuckerberg stepped down from one of his roles. Companies like Apple, Google, Oracle, Twitter, and Microsoft have all decided to separate the roles of CEO and chairman, as Jonas Kron, a senior vice president at Trillium Asset Management, told Business Insider.

A 2012 study from the Harvard Law School Forum on Corporate Governance and Financial Regulation found that companies typically spend more when one person acts as CEO and chairman. The study authors also noted that combining the roles results in an inherent conflict of interest and “appears to be indicative of the potential for other governance and management failures.”

But that’s not how Facebook sees it.

“We believe that our capital structure is in the best interests of our stockholders and that our current corporate governance structure is sound and effective,” the company wrote in a statement, adding that removing Zuckerberg as chairman would cause “uncertainty, confusion, and inefficiency in board and management function.”


3D printing might save your life one day. It's transforming medicine and health care.

What can 3D printing do for medicine? The "sky is the limit," says Northwell Health researcher Dr. Todd Goldstein.

Northwell Health
Sponsored by Northwell Health
  • Medical professionals are currently using 3D printers to create prosthetics and patient-specific organ models that doctors can use to prepare for surgery.
  • Eventually, scientists hope to print patient-specific organs that can be transplanted safely into the human body.
  • Northwell Health, New York State's largest health care provider, is pioneering 3D printing in medicine in three key ways.
Keep reading Show less

Neuroprosthetics and deep brain stimulation: Two big neuroscience breakthroughs

Neuroscience is working to conquer some of the human body's cruelest conditions: Paralysis, brain disease, and schizophrenia.

Videos
  • Neuroscience and engineering are uniting in mind-blowing ways that will drastically improve the quality of life for people with conditions like epilepsy, paralysis or schizophrenia.
  • Researchers have developed a brain-computer interface the size of a baby aspirin that can restore mobility to people with paralysis or amputated limbs. It rewires neural messages from the brain's motor cortex to a robotic arm, or reroutes it to the person's own muscles.
  • Deep brain stimulation is another wonder of neuroscience that can effectively manage brain conditions like epilepsy, Parkinson's, and may one day mitigate schizophrenia so people can live normal, independent lives.
Keep reading Show less

Maps show how CNN lost America to Fox News

Is this proof of a dramatic shift?

Strange Maps
  • Map details dramatic shift from CNN to Fox News over 10-year period
  • Does it show the triumph of "fake news" — or, rather, its defeat?
  • A closer look at the map's legend allows for more complex analyses

Dramatic and misleading

Image: Reddit / SICResearch

The situation today: CNN pushed back to the edges of the country.

Over the course of no more than a decade, America has radically switched favorites when it comes to cable news networks. As this sequence of maps showing TMAs (Television Market Areas) suggests, CNN is out, Fox News is in.

The maps are certainly dramatic, but also a bit misleading. They nevertheless provide some insight into the state of journalism and the public's attitudes toward the press in the US.

Let's zoom in:

  • It's 2008, on the eve of the Obama Era. CNN (blue) dominates the cable news landscape across America. Fox News (red) is an upstart (°1996) with a few regional bastions in the South.
  • By 2010, Fox News has broken out of its southern heartland, colonizing markets in the Midwest and the Northwest — and even northern Maine and southern Alaska.
  • Two years later, Fox News has lost those two outliers, but has filled up in the middle: it now boasts two large, contiguous blocks in the southeast and northwest, almost touching.
  • In 2014, Fox News seems past its prime. The northwestern block has shrunk, the southeastern one has fragmented.
  • Energised by Trump's 2016 presidential campaign, Fox News is back with a vengeance. Not only have Maine and Alaska gone from entirely blue to entirely red, so has most of the rest of the U.S. Fox News has plugged the Nebraska Gap: it's no longer possible to walk from coast to coast across CNN territory.
  • By 2018, the fortunes from a decade earlier have almost reversed. Fox News rules the roost. CNN clings on to the Pacific Coast, New Mexico, Minnesota and parts of the Northeast — plus a smattering of metropolitan areas in the South and Midwest.

"Frightening map"

Image source: Reddit / SICResearch

This sequence of maps, showing America turning from blue to red, elicited strong reactions on the Reddit forum where it was published last week. For some, the takeover by Fox News illustrates the demise of all that's good and fair about news journalism. Among the comments?

  • "The end is near."
  • "The idiocracy grows."
  • "(It's) like a spreading disease."
  • "One of the more frightening maps I've seen."
For others, the maps are less about the rise of Fox News, and more about CNN's self-inflicted downward spiral:
  • "LOL that's what happens when you're fake news!"
  • "CNN went down the toilet on quality."
  • "A Minecraft YouTuber could beat CNN's numbers."
  • "CNN has become more like a high-school production of a news show."

Not a few find fault with both channels, even if not always to the same degree:

  • "That anybody considers either of those networks good news sources is troubling."
  • "Both leave you understanding less rather than more."
  • "This is what happens when you spout bullsh-- for two years straight. People find an alternative — even if it's just different bullsh--."
  • "CNN is sh-- but it's nowhere close to the outright bullsh-- and baseless propaganda Fox News spews."

"Old people learning to Google"

Image: Google Trends

CNN vs. Fox News search terms (200!-2018)

But what do the maps actually show? Created by SICResearch, they do show a huge evolution, but not of both cable news networks' audience size (i.e. Nielsen ratings). The dramatic shift is one in Google search trends. In other words, it shows how often people type in "CNN" or "Fox News" when surfing the web. And that does not necessarily reflect the relative popularity of both networks. As some commenters suggest:

  • "I can't remember the last time that I've searched for a news channel on Google. Is it really that difficult for people to type 'cnn.com'?"
  • "More than anything else, these maps show smart phone proliferation (among older people) more than anything else."
  • "This is a map of how old people and rural areas have learned to use Google in the last decade."
  • "This is basically a map of people who don't understand how the internet works, and it's no surprise that it leans conservative."

A visual image as strong as this map sequence looks designed to elicit a vehement response — and its lack of context offers viewers little new information to challenge their preconceptions. Like the news itself, cartography pretends to be objective, but always has an agenda of its own, even if just by the selection of its topics.

The trick is not to despair of maps (or news) but to get a good sense of the parameters that are in play. And, as is often the case (with both maps and news), what's left out is at least as significant as what's actually shown.

One important point: while Fox News is the sole major purveyor of news and opinion with a conservative/right-wing slant, CNN has more competition in the center/left part of the spectrum, notably from MSNBC.

Another: the average age of cable news viewers — whether they watch CNN or Fox News — is in the mid-60s. As a result of a shift in generational habits, TV viewing is down across the board. Younger people are more comfortable with a "cafeteria" approach to their news menu, selecting alternative and online sources for their information.

It should also be noted, however, that Fox News, according to Harvard's Nieman Lab, dominates Facebook when it comes to engagement among news outlets.

CNN, Fox and MSNBC

Image: Google Trends

CNN vs. Fox (without the 'News'; may include searches for actual foxes). See MSNBC (in yellow) for comparison

For the record, here are the Nielsen ratings for average daily viewer total for the three main cable news networks, for 2018 (compared to 2017):

  • Fox News: 1,425,000 (-5%)
  • MSNBC: 994,000 (+12%)
  • CNN: 706,000 (-9%)

And according to this recent overview, the top 50 of the most popular websites in the U.S. includes cnn.com in 28th place, and foxnews.com in... 27th place.

The top 5, in descending order, consists of google.com, youtube.com, facebook.com, amazon.com and yahoo.com — the latter being the highest-placed website in the News and Media category.
Keep reading Show less

Why it’s hard to tell when high-class people are incompetent

A recent study gives new meaning to the saying "fake it 'til you make it."

Pixabay
Surprising Science
  • The study involves four experiments that measured individuals' socioeconomic status, overconfidence and actual performance.
  • Results consistently showed that high-class people tend to overestimate their abilities.
  • However, this overconfidence was misinterpreted as genuine competence in one study, suggesting overestimating your abilities can have social advantages.
Keep reading Show less
//This will actually fire event. Should be called after consent was verifed