ISS, Glass Lewis Oppose Facebook Directors

The two major investor advisory firms this week urged Facebook Inc. (FB)  shareholders to vote against several of the company's directors at its May 31 annual meeting.

In a report obtained by The Street's sister publication The Deal, Institutional Shareholder Services recommended that investors vote no in an uncontested election against five of nine Facebook directors, including the company's founder, Mark Zuckerberg, who holds the chairman position.

The other major proxy advisory firm, Glass Lewis, urged investors to vote no against four Facebook directors, but it noted that one of the directors it was urging to leave, Jan Koum, the CEO of Facebook unit, WhatsApp, had announced he won't stand for re-election.

Glass Lewis urged investors to reject three other directors, Marc Andreessen, Erskine Bowles and Sue Desmond-Hellmann, all three of which have served on the company's audit committee. 

At issue are allegations of data misuse by British political consulting group Cambridge Analytica, which was employed by the Trump campaign, and acquired access to private data from 87 million people without their consent, 70 million of which are in the U.S. This scandal follows another crisis involving Ruble payments for Russian Facebook ad buys intended to exploit divisions with the goal of purportedly tipping the 2016 election in favor of Donald Trump.

Editor's note: A complete version of this was published by The Deal, a sister publication of TheStreet that offers sophisticated insight and analysis on all types of deals. Click here for a free trial.

More from Stocks

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker