NEW YORK (TheStreet) -- After all of Facebook's (FB) - Get Meta Platforms Inc. Class A Report proposals were adopted at Monday's shareholder meeting, Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber and NorthStar Asset Managementpresident and founder Julie Goodridge hotly debated the social media giant's voting structure on CNBC's "Closing Bell."
The approved proposals include the reelection of all of Facebook's board members and the creation of a new class of shares, enabling company CEO Mark Zuckerberg to maintain control of voting even as he sells some of his shares to fund philanthropies, according to CNBC.
"Because Mark Zuckerberg controls the majority of Facebook's voting shares, all of Facebook's proposals were adopted," CNBC's Julia Boorstin reported. Zuckerberg controls 60% of Facebook's voting shares.
Facebook's voting issue is that "for the past three years" shareholders requested, to no avail, that the company issue a one-vote-per-share policy. Zuckerberg and some other "insiders," have 10 votes per share, Goodridge, a shareholder herself, stated.
"For example, last year, if everyone had one vote per share, our resolution to reclassify the stock as one vote per share across all classes would have won," Goodridge continued.
She (Goodridge) makes a valid point but "you invest in every company based on the rules they set up and this rule is pretty simple. It's Zuckerberg rules. The whole shareholder meeting is almost a farce," Gerber noted.
Zuckerberg is "who we're betting with" and that is transparent. "If you don't like it, don't buy the stock," he added.
Gerber argued further, saying Zuckerberg's policy is the essence of capitalism. Goodridge refuted this claim and said "her beef" with the CEO is that if he wanted to keep complete control of the voting shares, he should have kept ownership of 51% of them.
Gerber advises shareholders to simply "sell the stock" if they disagree with a decision of Zuckerberg's.
In addition to approving proposals at the shareholder meeting, Zuckerberg outlined future initiatives which should help drive the company's revenue growth such as creating new Messenger-type apps.
Shares of Facebook closed up by 0.31% to $113.37 on Monday.
(Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with afree trial.)
Separately, TheStreet Ratings rated Facebook as a "buy" with a score of A-.
This is based on the convergence of positive investment measures, which can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: FB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.