Using the information provided in the Facebook prospectus, and in the annual rep
ID: 2787489 • Letter: U
Question
Using the information provided in the Facebook prospectus, and in the annual report and other documents available on the Facebook’s investor relations webpage, analyze various available corporate governance mechanisms (e.g., the structure of the board, executive compensation, etc.) and give your opinion of the governance of Facebook. Using the information provided in the Facebook prospectus, and in the annual report and other documents available on the Facebook’s investor relations webpage, analyze various available corporate governance mechanisms (e.g., the structure of the board, executive compensation, etc.) and give your opinion of the governance of Facebook. Using the information provided in the Facebook prospectus, and in the annual report and other documents available on the Facebook’s investor relations webpage, analyze various available corporate governance mechanisms (e.g., the structure of the board, executive compensation, etc.) and give your opinion of the governance of Facebook.Explanation / Answer
Answer:
I have reviewed the Facebook annual report of 2016 and 2015 and corporate governance tab on the website with the name of https://investor.fb.com.
Under this various c suite management, people are covered under various heads with their respective name and their operational function. In an annual report, there is a link for corporate governance is given under which structure of management, governance document, Board of directors and committee compensation are well defined.
To understand the structure of management every link can be explored in its depth to culled out the various information relating to above-mentioned elements.
As per my opinion, FB looks good on the corporate governance front since they didn't try to hide any pertinent information relating to its top people. However, they didn't divulge the compensation details of the top management and board of director on the website which is already available in the public domain.
So, I think there should be this information needs to disclosed so the shareholder can directly get information from the annual report or from company's website.
At the end, I conclude by saying that Fb has good corporate governance standard on the face of it but can be improved by providing detail information on all the elements listed under the corporate governance tab in the website with the information over a period of time and as in date as well. so the various stakeholders of the company can get hold of the company appropriations of the funds among its management and distribution of wealth among its shareholders.
(ends)
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