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MarketWatch First Take: Mark Zuckerberg and Elon Musk expose Silicon Valley’s poor corporate governance

A company’s board of directors is supposed to act in the best interests of shareholders, but that doesn’t always seem to be the case in Silicon Valley, where some chief executives are capable of driving boards to act in their own interests.

The latest example of worrisome corporate governance in the tech mecca comes from Facebook Inc. FB, +0.81% , where new information shows that the relationship between one board member and Chief Executive Mark Zuckerberg has gotten far too cozy. Bloomberg News reported revelations Thursday on recently unsealed documents in a shareholder lawsuit that contends Facebook’s recent stock split with a new class of nonvoting stock are tantamount to “granting Zuckerberg billions of dollars in equity, for which he will not pay anything.

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