One Facebook shareholder is not happy with the company’s compensation policy when it comes to its board of directors, and the result, according to Bloomberg, was a lawsuit filed in Delaware Chancery Court.
Bloomberg reported that shareholder Ernesto Espinoza claimed in his suit that the social network’s non-employee directors received an average of $461,000 each in Facebook stock during 2013, as much as 43 percent above the industry average, calling these outlays a waste of corporate assets, and saying in the complaint:
Moreover, the members of the board are free to continue to award themselves virtually any amount of compensation they choose into perpetuity.
In the case — Espinoza vs. Zuckerberg, CA9745 — Espinoza alleged breach of fiduciary duties, waste of corporate assets, and unjust enrichment, according to Bloomberg, and he asked the court to “recoup the unfair excessive compensation” and “impose meaningful restrictions on the board’s ability” to grant those awards.
Facebook spokeswoman Genevieve Grdina responded in an email to Bloomberg:
The lawsuit is without merit, and we will defend ourselves vigorously.
Readers: What do you think of Espinoza’s case?
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