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METAMark Zuckerbergcorporate governance
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/22/2026 | 648.91 |
| Change that session | -6.97% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Mark Zuckerberg’s creative plan to pay California’s proposed billionaire tax without losing control of Meta
Meta says its board approved a new non-voting class of stock, Class C common stock, effective in January, to raise capital, pay employees and fund acquisitions including AI, while keeping the voting structure that gives CEO Mark Zuckerberg about 60% of the vote. The New York Times reports the new class also helps Zuckerberg pay a potential one-time 5% wealth tax under California’s proposed Proposition 40 without giving up voting control. According to Meta’s SEC filing, Zuckerberg discussed the billionaire tax with board members as far back as July, and the one-time stock dividend lets him sell or transfer up to 20% of the Class C shares he receives, representing 10% of his overall economic stake. Backers say the measure could raise as much as $100 billion over five years, mostly for healthcare.
- How Meta struck a deal to keep Mark Zuckerberg in California despite looming billionaire tax
According to a new regulatory filing, Meta CEO Mark Zuckerberg considered leaving California over concerns that Proposition 40, a ballot measure imposing a one-time 5% tax on California billionaires' assets, could reduce his control of the company, and Meta's board struck a deal to keep him in the state. Zuckerberg holds roughly 60% of voting power despite owning about 13% of shares, because Class B shares carry 10 votes each. He earns an annual salary of $1, so most of his wealth, which exceeds $200 billion, is tied to his Meta stake, and selling Class B shares to pay the tax could reduce his voting majority. Under the deal, Meta will issue non-voting Class C stock starting in January, and Zuckerberg can sell or transfer up to 20% of it so his voting majority is preserved. He had also told the board in September that he planned to list his Palo Alto home for sale, and the filing stresses that his leadership and presence at headquarters are critical at this inflection point for the company and the tech industry.
- Meta's Board Convinced Zuckerberg to Stay in California Despite its Wealth Tax. Here's What he Was Offered.
Zuckerberg warned Meta that he could leave California if the state's proposed billionaire wealth tax passed, and said he was evaluating relocating his primary residence outside the state. The board responded by approving publicly listed Class C shares with no voting rights, allowing him to sell 20% of them without reducing voting control. In return, Zuckerberg agreed to remain a California resident, or live wherever Meta's headquarters is, for eight years, and his remaining shares face restrictions that ease over time, subject to his continued leadership. The measure on the November 3 ballot, Proposition 40, would impose a one-time 5% tax on billionaire wealth, which would be about $12.4 billion on his estimated $247 billion fortune. The new structure is scheduled to take effect on January 19, 2027.
- Meta Just Created a Stock Zuckerberg Can Sell Without Losing Control
On October 21, 2026, Meta's board approved a new publicly listed, non-voting Class C common stock, to be distributed as a one-time dividend of one Class C share for each Class A and Class B share. Mark Zuckerberg holds about 60.6% of the votes but only about 13.4% of the stock, and the structure lets him sell part of his stake without losing control. The class will be created when the amended charter takes effect on January 19, 2027, with trading expected in late January 2027, and Meta says it may use it for capital raising, employee pay and acquisitions, though it has no specific financing plans yet. The announcement comes as free cash flow was negative $2.12 billion and 2026 capex is guided at $135 billion to $145 billion. META rose 0.47% to $697.52 in the regular session and reached $712.61 after hours, up 2.16%, alongside revenue of $64.601 billion.
- Meta’s new non-voting shares aim to protect Zuckerberg’s control: Oppenheimer
Oppenheimer said Meta's plan to issue non-voting Class C shares to all shareholders on Jan. 19, 2027 is likely designed to protect CEO Mark Zuckerberg's voting control amid a potential California wealth tax (Prop 40), a one-time 5% levy on residents with net worth above $1 billion that could cost him $10 billion to $15 billion in 2027. The firm maintained its Perform rating and $710 price target, and it expects Meta to raise capital for its AI buildout, though below the hundreds of billions of dollars the company cited. As of Oct. 1, Zuckerberg held 60.6% of voting power and 13.4% of shares outstanding. Analyst Jason Helfstein estimated his voting power would fall to 56.3% if he raised $15 billion personally and Meta raised $150 billion without non-voting stock, a level that is still above 50%.
- Mark Zuckerberg owns 13% of Meta but controls 61% of its votes. California's wealth tax would bill him on the 13%
Mark Zuckerberg owns about 13% of Meta but controls about 61% of its votes, because his Class B shares carry 10 votes each. California voters will decide on Nov. 3 on Proposition 40, a proposed one-time 5% tax on billionaires' net worth. Paying it would likely require him to sell stock or borrow against it, which would reduce his voting control. Meta's independent committee said he was 'not on the verge of losing voting control' but named the wealth tax as the main factor that could change this. The committee proposed a dividend of non-voting stock, payable only if Proposition 40 becomes law and his tax falls due, sized to cover the bill; Zuckerberg wanted more protection in case similar taxes are proposed elsewhere.
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