Proposal eight urged Meta to address antisemitism, anti-LGBTQ+, and anti-disability hate on its platforms. JLens, a registered investment advisor and 501©(3) nonprofit, which has an indirect financial interest in Meta through its roles as a data and proxy service provider and subadvisor to the TOV ETF, introduced the proposal in December.
Both Glass Lewis and Institutional Shareholder Services, the leading proxy advisory firms, endorsed the proposal. They emphasized the significant risks associated with online hateful content and the necessity for Meta to enhance its transparency. The Anti-Defamation League (ADL), a leading anti-hate organization, also supported the proposal.
Nearly Half of Meta Independent Investors Support JLens’ Shareholder Proposal
The proposal received 14.6% overall support, which is equivalent to 46.8% support from independent shareholders due to the dual-class share structure. That data is according to filings with the SEC. This makes it the top-ranked human-rights-related shareholder proposal of this proxy season to date, according to JLens.
“This vote shows that investors understand the real-world consequences of Meta’s content failures and expect stronger oversight and accountability,” Jonathan Greenblatt, CEO of ADL, said in a statement.
Meta’s dual-class share structure significantly skewed the percentage of overall support. The dual-class share structure grants 61% of the total voting power to Meta CEO Mark Zuckerberg, despite his minority equity stake.
Dual-class share structures, like Meta’s, can undermine shareholder democracy by allowing insiders to override the will of independent investors, according to a recent Harvard Law School study.
However, as the proposal garnered more than 5% of the vote, it has satisfied the SEC’s criteria for potential resubmission in a subsequent year.
“This is not the end—it’s only the beginning,” Ari Hoffnung, managing director of JLens, said in a statement. “Our commitment to combating antisemitism and all forms of hate—online and offline—is unwavering. We will continue pressing Meta until it delivers the transparency and accountability that shareholders, users, and vulnerable communities deserve.”
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