Facebook Inc and Mr Zuckerberg, Founder, Chairman, and CEO and largest shareholder by far, haven’t had a good few weeks. The recent outage of its platforms irritated users globally and it seriously embarrassed the company, especially when it emerged that its internal systems were impacted too. A sizeable chunk of 3 billion users were affected leading to much press comment on what happened – see here, for example. In addition, a whistle-blower interviewed on US TV, by the Wall Street Journal, and questioned by a US congressional committee provided an insight to the company that was both damaging and a reinforcement of the widespread perception that the company’s overwhelming focus is on capturing users and monetising their data over anything else.
At two o’clock in the morning recently, the Badger found himself cogitating on Facebook’s woes while listening in the dark to an unrelated BBC World Service programme during which a professor frequently made the point that ‘nothing lasts forever’. The professor’s truism struck a chord that felt relevant to the social media giant whose dominance has grown progressively since it floated publicly in 2012. Now, just a decade since it floated and with recent events reinforcing concerns about its power, the clamour for regulation and even break-up is gaining real momentum in politicians of all persuasions. It feels like Facebook is now truly facing ‘nothing is forever’ headwinds. As pointed out here, it’s not technology that’s at the root of the company’s problems and negative perceptions, it’s the business model.
Cogitations in the dark about the outage and whistle-blower claims crystalised into raised eyebrows that Facebook could have internal and external facing systems impacted by the same single point of failure, and ambivalence about the whistle-blower’s assertions given that truth is rarely as purported by one party in an argument. Thoughts moved on to how the Badger’s use of the company’s social media platforms has significantly waned over the years as a greater appreciation of how the company uses and monetises content developed. Then there was a moment of clarity in the darkness. ‘Nothing lasts forever’ applies directly to Mr Zuckerberg’s roles as Founder, Chairman, and Chief Executive too!
Mr Zuckerberg holds both the Chairman and CEO roles, which many will argue provides a clear line of command through the whole company. However, it places a disproportionate authority in the hands of one individual. The two roles are different, and the best corporate governance principles hold that they shouldn’t be held by the same individual. Facebook floated almost 10 years ago and so perhaps it’s time for Mr Zuckerberg to realise that ‘nothing lasts forever’ and that the time is right for him to step back and let others navigate the choppy waters of the company’s future? With this thought in mind, the Badger turned the radio off and went to sleep.