Meta (FACEBOOK, INC.) | Address Wealth Inequality Through an Ownership Culture at FACEBOOK, INC.

Status
Withdrawn
AGM date
Resolution details
Company ticker
FB
Lead filer
CorpGov.net
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Remuneration or pay
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
Meta Platform Inc (Company) shareholders request the Board’s Compensation, Nominating and Governance Committee (Committee) issue a report annually assessing the distribution of stock ownership incentives throughout the workforce (such as but not limited to performance share units, employee stock purchase plans, restricted stock units, and options). The report should include a matrix, sorted by EEO-1 employee classification or another appropriate classification scheme with four or more categories chosen by the Committee, showing aggregate amounts of stock ownership granted and utilized by all U.S Company employees and including associated voting power, if any. The report should be prepared prior to or concurrent with issuance of the next annual proxy statement.
Supporting statement
Wealth inequality in the United States has increased dramatically,1 is widely recognized as a significant social policy issue,2 and brings many problems, such as political polarization.3 Employee ownership is key to addressing this social policy in a bipartisan manner.4 Providing stock ownership incentives to boards and executives but not to all U.S. company employees has led to glaring inequality. Our Company’s pay ratio is small, 96 to 1, because Mr. Zuckerberg’s pay, at his choosing, consisted almost entirely of costs related to personal security. A similar ratio comparing stock ownership by named executives with those of typical U.S. employees would be much higher at our Company and nationally at other companies. From 1973 to 2018, inflation-adjusted wages for nonsupervisory American workers were flat. Meanwhile, a dollar’s worth of stock grew (in real terms) to $14.09. Hourly wages stagnated. Income from capital ownership accelerated. The top 10% of American households earned 97% of capital gains. Typical white families own nearly 10x the average Black family. Single women own only 36% of what typical men own. That gap is greater for women of color.5 Strengthening employee ownership would help address these inequities.6 Our Company recognizes stock ownership as an incentive for directors and named executives, reporting annually on utilization. We ask our Company to track and disclose similar information and associate voting power for all U.S. employees using meaningful classifications. Widespread employee ownership is correlated with better firm performance, fewer layoffs, better employee compensation and benefits, higher median household wealth, longer median job tenure, and reduced racial and gender wealth gaps.7 Our Company should educate and promote ownership plans and progress towards an engaged employee ownership culture.8 Employee engagement and trust are crucial to success. Expanding the Committee’s perspective beyond executive compensation would give them a better grasp on how human talent matters for the company’s business strategy and operations.9 Our Company could benefit shareholders and the economy by leading on this issue.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.