Monday, June 09 16:25:40
Facebook 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 Delawary 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.