Exclusive: Meta faces pressure to support independent audit of risk oversight committee

Meta is facing pressure to support a shareholder proposal calling for an independent assessment of the company’s audit and risk oversight committee.

A group of unions and a group of state treasurers sent letters to Meta CEO Mark Zuckerberg ahead of next week’s annual shareholder meeting, urging the company to reconsider its opposition to a shareholder proposal calling for the independent assessment.

Copies of the letters were shared exclusivley with The Hill. 

The shareholder proposal cites fines issued by the Federal Trade Commission and lawsuits filed by attorneys general against Meta. 

“Proponents are concerned that a lack of rigorous risk oversight and culture at the Company will ultimately result in further damage to shareholder value,” the proposal states. 

The seven unions, including the American Federation of Teachers, Utility Workers Union of America and the Strategic Organizing Center argued the resolution is necessary because Zuckerberg, as CEO and chair of the board, has “resisted protecting individual and institutional shareholders.”

The union letter slams Meta for having “ignored many well-documented and mounting risks and problems that demand greater attention,” citing reports about the spread of COVID-19 misinformation, content on Instagram damaging teen girls’ mental health, and the spread of election misinformation in the lead up to the Jan. 6, 2021, riot at the Capitol.

The letter signed by eight state treasurers urges Meta to support the proposal and give the regulators confidence that the board and Zuckerberg as chairman recognize their “responsibility to weigh the risks that Meta’s products pose to the public-at-large, given their outside influence on the global society.” 

“Not only would this review help ensure that stakeholders have full information regarding the company’s actions, it would provide Meta with a road map to ensure any weaknesses are addressed, further assisting the company in protecting its long-term financial stability,” they wrote. 

Meta’s board of directors is urging shareholders against the proposal. 

The Meta board said in a proxy statement to shareholders “given the robust efforts already in place” the board “believes that the preparation of the report contemplated by this proposal is unnecessary and not beneficial to our shareholders.” 

Meta’s annual shareholder meeting will convene Wednesday.