Facebook has increased the power that the company’s audit committee has in an attempt to avoid another data scandal, in what is being considered an attempt to satisfy shareholders.
Facebook’s audit committee, which is currently overseen by former White House chief of staff Erskine Bowles, changed its name from “the audit committee” to “the audit and risk oversight committee,” Business Insider reports.
Facebook’s decision to provide more power to the committee is likely a result of pressure from shareholders, a proposal for an independent oversight committee was tabled at Facebook’s investor meeting last month after 45 percent of the company’s independent shareholders expressed support for it.
Senior vice president of Trillium Asset Management, Jonas Kron, tabled the idea on behalf of its client the Park Foundation, and welcomed Facebook’s decision to increase the power of its audit committee, telling Business Insider: “This is a very necessary and positive development.
Kron manages approximately $10 million of Facebook’s stock on behalf of the Park Foundation and warned that the committee should be given appropriate power over Facebook’s management and should meet approximately every three months, or twice a year.