Meta Platforms plans to issue a new class of non‑voting shares, distributing them one‑for‑one to current holders. The move lets founder Mark Zuckerberg raise capital and sell stock for a potential California wealth tax without diluting his 61 % voting grip, which rests on super‑voting shares that carry 10 votes each. Researchers at the European Corporate Governance Institute flag a “wedge” of 47 % between Zuckerberg’s voting and economic stakes — well above the average 24 % for dual‑class firms — and warn that a widening wedge can depress share prices.
Even if Zuckerberg sold his full allotment of the new shares, the wedge would only climb to 54 %. The board has limited his immediate sales to a fifth of the new stock. In 2016 a similar proposal sparked shareholder lawsuits and was withdrawn.
Zuckerberg also pushed for a Musk‑style pay package and threatened to leave California if his control were threatened. Lex calculates that even after a $15 bn stock sale and a $100 bn equity raise, he would retain roughly 55 % of votes. The article argues a fairer route would be to put the plan to a shareholder vote, as Tesla did with Musk’s compensation.
Source: Financial Times Companies · Summarized by HeadlinesBriefing