Mark Zuckerberg’s creative plan to pay California’s proposed billionaire tax without losing control of Meta
Meta has introduced a new class of non-voting stock, which reports suggest is designed to help Mark Zuckerberg pay a potential California wealth tax without diluting his voting control. The move follows internal discussions where Zuckerberg reportedly threatened to sell his property if the board did not protect his interests.
Why it matters
Illustrates the lengths to which ultra-wealthy individuals go to maintain corporate control while navigating state-level tax legislation.
During Meta’s earnings call on Wednesday, the company revealed its board had approved a new class of non-voting stock, called Class C common stock. The shares give the holder an ownership stake but no vote on company decisions. This class takes effect in January. Meta says it will use the stock for capital raising, employee pay, and acquisitions — including its expensive push into AI — while maintaining the current voting structure that favors its founder and CEO, Mark Zuckerberg, who controls around 60% of the vote.
Now, however, the New York Times has reported there’s another reason for the new class: helping Zuckerberg pay for California’s proposed “billionaire tax,” if voters approve it. Because the new shares carry no votes, he could sell some of them to cover the tax without giving up voting control.
Headlinne story · 6 newsrooms
Meta Approves Stock Plan to Keep Mark Zuckerberg in California
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