San Diego, CA -- (SBWIRE) -- 06/17/2014 -- An investor in shares of Facebook Inc (NASDAQ:FB) filed a lawsuit against directors of Facebook Inc in connection with the compensation of certain nonexecutive directors.
Investors who are current long term stockholders in Facebook Inc (NASDAQ:FB) shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:FB investors by allowing certain nonexecutive directors to be compensated with allegedly excessive stock awards compared to their peers.
The plaintiff says that certain nonexecutive directors are paid over 40% more than the average nonexecutive director at comparable companies such as Ebay, Linkedin Corp, Yahoo and Netflix, while Facebook has between 66 and 49 % lower revenues than its peers.
The plaintiff claims that the defendants have abused this power by giving themselves excessive stock awards that when combined with their other forms of compensation gives the non-executive members of the board a yearly take beyond what could be considered reasonable.
The plaintiff seeks to recoup the unfair excessive compensation the director defendants awarded themselves and impose meaningful restrictions on the board's ability to award itself compensation going forward.
Facebook Inc reported that its annual Total Revenue rose from over $1.97 billion in 2010 to over $7.87 billion in 2013 and that its respective Net Income increased from $606 million to $1.5 billion. Shares of Facebook Inc (NASDAQ:FB) grew from almost $18 per share in August 2012 to as high as over $72 per share in March 2014.
On June 13, 2014, NASDAQ:FB shares closed at $64.50 per share.
Those who purchased shares of Facebook Inc have certain options and should contact the Shareholders Foundation.
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