Facebook Inc., the social-networking company planning an initial public offering, faces corporate-governance scrutiny from one of its investors, the California State Teachers' Retirement System.
“We are in fact in the beginning stages of engagement with Facebook” over governance issues, Ricardo Duran, a spokesman for the pension fund, said in an interview. “We are planning to send them a letter.”
Facebook Chief Executive Officer Mark Zuckerberg controls 56.9 percent of voting power at the social network, which filed last week to raise $5 billion in an IPO. Corporate-governance experts have said that the CEO's majority control puts too much power in the hands of one person.
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