Zuckerberg told Meta directors he might leave California, where he could lose billions to a wealth tax. Now Meta is issuing a new class of stock
Meta CEO Mark Zuckerberg intends to maintain control over the company he founded in 2004, and a new class of stock will help him do just that.
TL;DR
- Meta is issuing a new class of stock, Class C, to shareholders.
- The new shares will not carry voting rights.
- This move is intended to allow Mark Zuckerberg to maintain voting control of Meta.
- The Class C stock can be used for employee compensation, acquisitions, and capital raising.
- Zuckerberg wanted to avoid selling his Class B shares, which would dilute his voting power, to pay a potential California wealth tax.
- The negotiations with the board were contentious, with discussions of resignation.
- Zuckerberg threatened to leave California to avoid the wealth tax.
- The final agreement includes a dividend of one Class C share for each Class A and B share, with Zuckerberg able to sell 20% immediately.
- The Class C stock will begin trading in late January.