Casestudy should focus on Facebook
Ibelieve that Facebook should not have Mark Zuckerburg as the CEO ofthe company and the chairman of the board1.The leadership hierarchy and the roles of the CEO and the chairmanare clearly outlined. The CEO is the chief decision maker in thecompany and oversees the company executive. Chairman manages theactivities of the board and gives direction and guidance to the boardmembers2.The board chairman does not have executive position over the board orthe company. Consequently, the two roles are distinctive, discreteand should not be amalgamated or held by one individual. The reasonis that the Facebook is revolutionary brand and thus the entireprocess of decision making cannot be left to Mark Zuckerburg3.Decision making is a rigorous and broad process that requiresnecessary equilibriums.
IfZuckerburg is to remain the chairman and the CEO of the company, theshareholders will be underrepresented, and the process ofaccountability may be impaired4.According to consumer supervisory body, Facebook is facingaccountability issues such as discrimination, climate change, andemployee rights among others issues. The company needs a sovereignchairman who can give an independent account of these matters5.Correspondingly, the board may not be able to objectively andimpartially evaluate his performance and decisions. There is the needfor an independent chair to oversee compliance of critical issuessuch as acquiescence and recruiting. There is also need to have newtalent with different, innovative and superior ideas to offer toFacebook Company or ardently represent the wishes of the shareholdersin the board meeting6.As well, the issue of the employees’ welfare such as salariesrequires an independent overseer. There should also be a clearsuccession plan in that the policies, strategies, and culture of thecompany need somebody who may ensure continuity in case MarkZuckerburg is not the CEO In future. Moreover, according to researchcarried out in 2012 the cost of remunerating one individual aschairman /CEO was expressively higher compared to remuneratingindependent CEO and chairman7.Accordingly, Mark Zuckerburg should resign as the chairman ofFacebook Company and remain as CEO.
1 Work.chron.com. (2017). CEO vs. Chairman. [Online] Available at: http://work.chron.com/ceo-vs-chairman-29866.html
2 Splitting the CEO and Chairman Roles 2012.http://www.russellreynolds.com/newsroom/splitting-the-ceo-and-chairman-roles-yes-or-no
3 Business insider. 2017 http://www.businessinsider.com/the-30-biggest-media-owners-in-the-world-2016-5/#6-bertelsmann–1004-billion-in-media-revenue-25
4 Facebook shareholders urge company to replace Mark Zuckerberg. 2017
5 Facebook shareholders urge company to replace Mark Zuckerberg with. 2017.
6 Should the chairman be the CEO? 2014. http://fortune.com/2014/10/21/chairman-ceo/
7 Separation of Chair and CEO Roles 2012. https://corpgov.law.harvard.edu/2011/09/01/separation-of-chair-and-ceo-roles/