Governance

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FACEBOOK INC

Group 1 Members:

SHUDI WANG( 103661502) XIAO WANG(103691875) XIAOYILIU(103691943) LICHAO LI(103665618) SHANSHAN CHEN(103604330) NANXI YE(103476843) JIE ZHAO(1036661052) XIAOCUI ZHU(103683832)

TABLE OF CONTENTS
1. Introduction …………………………………………………………………………………3 2. The attributes of good board………………………………………………………………...4 3. Facebook's IPO (initial public offering)……………………………………………………..5 4. CEO Compensation………………………………………………………………………….6 5. The Board-Management Relationship……………………………………………………….6 6. Board selection……………………………………………………………………………….8 7. Conclusion …………………………………………………………………………...………9 8. References…………………………………………………………………………………...11

CORPORATE GOVERANCE

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Introduction:
Do you have Face Book yet? Today Face Book has becoming one part of our lives; almost everyone has their own Facebook and work on it every day. Facebook is the world’s largest social network web site, with over than 900 million users. Mark Zuckerberg founded Facebook in 2004 while he was attending Harvard University. The company’s 2012 IPO and valuation of about $100 billion are among the largest in technology history. And Face book is also a social networking Web site which had the largest number of registered users among college-focused sites with over 30 million members worldwide ranked between top 10–20 web sites seventh most visited site in the US.

Social networks such as Facebook can provide a lot of benefits to members of an organization: 1.Connections with peers: The main function of Facebook is to provide connections between friends with similar interests. 2 . Sharing resources: Many of the popular Facebook applications are used for sharing resources. 3.Web presence: Since November 2007, although Facebook was originally designed for use by individuals, it can also be used as a Web hosting service for an organizational page. During recent years, Facebook has generated a large amount of interest. Much of the interest has arisen since Facebook announced the Facebook Platform which enabled third party developers to build applications which could be used within the Facebook environment. Since Facebook was developed initially to support students it is not surprising that student usage has proved so popular. This interest has also spread to other sectors within institutions, with researchers and members of staff exploring Facebook possibilities.

Corporate Governance The Board of Directors of Facebook sets highly standards for the Company's employees, officers and directors. Corporate governance has playing a very important role in Facebook’s day to day actives. It is the responsible of the Board of Directors to serve as a carefully for shareholders and to evaluate the performance of the Company's business. 1. Board of Directors: Mark Zuckerberg (Chairman and CEO), Sheryl Sandberg (Chief Operating Officer), CORPORATE GOVERANCE

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Marc Andreessen, Erskine B. Bowles, James W. Breyer, Donald E. Graham, Reed Hastings , Peter A. Thiel 2. Management: Mark Zuckerberg (Chairman and CEO) Sheryl Sandberg (Chief Operating Officer) David Ebersman (Chief Financial Officer)

The attributes of good board
As we know, before Facebook into public, it is individually style of the Board directors. Zuckerberg had made big some decisions by himself during the development of Facebook -rejection of YAHOO and Microsoft. At that time, majority of people think he was crazy and those decisions will kill the company. However, the Facebook is valued 500billion before they were going into public.

Absolutely, the contribution of the increasing value of company should belong to Zuckerberg, but it still exist high risk that company governance depends on one person. So they decided to restricted their board, and also they consider it for three aspects: 

The independence of Directors

Even Facebook is a controlled company, the board of Facebook comprises a majority of directors who are independent directors. This is a...
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