Meta approves new non-voting stock class to retain Zuckerberg during expansion

Meta approved a new class of non-voting Class C common stock during its earnings call, according to TechCrunch and MarketWatch. The new share class, which takes effect in January, allows the company to raise capital, issue employee compensation, and fund artificial intelligence initiatives without altering its corporate voting power. TechCrunch reported that Meta Chief Executive Officer Mark Zuckerberg currently controls approximately 60 percent of the company's voting power. [1][4]

The corporate restructuring was engineered after Zuckerberg considered leaving California over a proposed state tax on billionaires, according to MarketWatch. TechCrunch and MarketWatch reported that the new stock structure was designed to help Zuckerberg pay potential tax liabilities without relinquishing voting control of the social media parent company. [1][4]

Under a corporate filing cited by Business Insider, Meta stockholders will receive a Class C share dividend for every share they own if the stock reaches set performance metrics. The dividend triggers if the stock doubles from a baseline price of $580.60 to roughly $1,161 while maintaining a compound annualized return of at least 10 percent since September 10. A second dividend distribution occurs if the stock's 30-day volume-weighted average price doubles again to approximately $2,322 under the same return threshold. [3]

Zuckerberg co-founded Facebook and serves as the chairman and chief executive officer of Meta Platforms. MarketWatch reported that existing stockholders will receive one share of the publicly traded Class C stock per existing share starting next January. [4][11]