It has been circulating from quite some time that Facebook CEO Mark Zuckerberg is planning to get into the government. Different confusions and misconceptions arise when such news got hype.
One such misperception arose from Bloomberg’s report of unscrewed court filings regarding communication between Zuckerberg and Facebook board member Marc Andreessen. It stated that they covertly texted about how to persuade other board members. So that it could favor the creation of Class C non-voting shares. That would let Zuckerberg to hold voting control of Facebook. He contributes the majority of his wealth to his and his wife’s philanthropic vehicle, the Chan Zuckerberg Initiative.
Mark Zuckerberg Responds on the Matter of his Involvement in Government Services
Mark Zuckerberg is not restricted to just two years working in the government while still monitoring Facebook, as has been extensively misrepresented. A closer analysis of SEC documents revealed that Zuckerberg only has to possess enough Facebook stock or have the board’s support to be permissible to serve in government forever.
Zuckerberg Could Run Facebook While Serving in Government Forever
Without the limit, Zuckerberg has the chance to be selected or elected to a substantial office. And have as much time as he wants to make an impact, instead of just plummeting in potentially as a cabinet member whose terms usually last under two years.
Obviously, getting nominated would involve the faith of the people which has been traumatized by the fake news outrage. Some would surely view a role in government as a self-centered push for power despite Zuckerberg’s enormous charity initiatives. Certain government offices might have generally required him to hand over control of Facebook. But at present Donald Trump is redefining how much possession of business one can have as President
As part of the negotiation, Zuckerberg agreed to some ways for Facebook to “alleviate succession risk”. Essentially avoid Zuckerberg and his estate holding overall control on account of his 10-votes-per-share Class B stock if he dies, becomes disabled, is fired, or willingly quits and leaves the company. In these cases, his stock transforms into single-vote Class A shares so that Facebook could entice a higher quality replacement CEO as an absent Zuckerberg wouldn’t still regulate the company.
But Zuckerberg fought for a big exemption to the acquiescence “sunset trigger”: he may gladly resign or take a leave of absence. Whereas still preserving voting control of Facebook if he’s going to work in government.
Basically, if Mark Zuckerberg holds ample of Facebook he can still serve in government. And if he doesn’t, he just needs board agreement.
Now that all the confusions are cleared up, Zuckerberg’s impending to make variations through government service comes into focus.