Facebook Inc. (FB) (FB), facing criticism for a lack of diversity on its board, appointed Chief Operating Officer
Sheryl Sandberg as its first female director.
"Sheryl has been my partner in running Facebook," Chief Executive Officer
Mark Zuckerberg said in a statement yesterday. "Her understanding of our mission and long-term opportunity, and her experience both at Facebook and on public company boards makes her a natural fit for our board."
Facebook has been seeking to add directors, including at least one woman, who can make its board more inclusive, people with knowledge of the matter said last month. The world's largest social-networking service, a majority of whose users are women, will benefit from the addition of a female voice to its board, said Laura Martin, an analyst at Needham & Co.
"This is a great move for Facebook," said Martin, who doesn't own shares and rates the stock a buy. "Academic research shows that the greater the diversity on a board, the higher the returns to shareholders are."
The
California State Teachers' Retirement System, which manages $145 billion, asked Facebook in February to add a woman to its board, arguing that diversity improves governance and performance. The advocacy group Face It Campaign also urged Facebook to diversify its board to include women and minorities...