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Tags: Facebook | Zuckerberg | overpaying | lawsuit

Facebook and Zuckerberg Sued for Overpaying Board Members

Monday, 09 June 2014 11:29 AM EDT

Facebook Inc. and Chairman Mark Zuckerberg were sued by an investor alleging they wasted corporate assets by giving the social-networking company’s directors excessive compensation.

Facebook’s board paid non-employee directors an average of $461,000 last year, exceeding industry peers by as much as 43 percent, shareholder Ernesto Espinoza said in a lawsuit filed in Delaware Chancery Court.

“Moreover, the members of the board are free to continue to award themselves virtually any amount of compensation they choose into perpetuity,” according to the complaint made public today in Wilmington.

Espinoza alleged breach of fiduciary duties, waste of corporate assets and unjust enrichment. He asked a judge to “recoup the unfair excessive compensation” on behalf of the Menlo Park, California-based company and “impose meaningful restrictions on the board’s ability” to grant the awards.

Company officials didn’t immediately respond to an e-mailed request for comment on the lawsuit.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

© Copyright 2024 Bloomberg News. All rights reserved.


InvestingAnalysis
Facebook Inc. and Chairman Mark Zuckerberg were sued by an investor alleging they wasted corporate assets by giving the social-networking company's directors excessive compensation.
Facebook, Zuckerberg, overpaying, lawsuit
156
2014-29-09
Monday, 09 June 2014 11:29 AM
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