FACEBOOK’S HEADACHES – IS ITS BOARDROOM TO BLAME?
Fast growth, unicorn companies have a bad habit of booming so quickly they outgrow their corporate governance. According to an article in the April issue of online monthly Boardroom INSIDER, that’s the root cause for Facebook’s many recent problems.
Sharing confidential data with consultant Cambridge Analytica, fake political news, and clumsy efforts to dampen cyberbullying and “hate speech” are among woes facing the half-trillion dollar social net behemoth. BI editor and governance speaker Ralph Ward notes that some Facebook headaches can be laid to its patchwork governance structure.
“The board could not be more impressive,” Ward writes, with stars such as Facebook COO Sheryl Sandberg, Marc Andreesen, and Reed Hastings. But on the downside, founder Mark Zuckerberg combines the CEO and board chair titles in himself, and wields a dual-class stock structure that gives him power “to a degree outsized even for dot-coms.” The boardroom result — a company that is a reflection of it’s founder’s strengths and weaknesses, with “little in place to check those weaknesses.”
Also in the April issue of Boardroom INSIDER: