Some investors are concerned about the future of Facebook after shareholders approved a new class of nonvoting Class C shares on Monday.
"You're basically placing all of your trust into the genius of one person, and even a great genius sometimes makes mistakes," Charles Elson, director of the University of Delaware's John L. Weinberg Center for Corporate Governance, told CNBC's "Closing Bell."
In April, CEO Mark Zuckerberg said that the new stock structure would enable him to help Facebook "continue to build for the long term," while allowing him and his wife to pursue their philanthropic efforts. The structure allows the Facebook founder to sell his nonvoting shares, while retaining Class A and B shares, allowing Zuckerberg to retain control of the company.
Elson said that voting rights give shareholders means to "protect their capital by replacing management, replacing the board."
Facebook's new structure, he argued, puts investors at risk by lowering accountability for Zuckerberg, who Elson sees as a "talented CEO."