Meta investors will get free shares if Mark Zuckerberg hits 'extraordinary' targets
Meta has announced a new share structure that rewards investors with free Class C shares if the company hits specific, ambitious stock price and growth targets. This move is designed to help CEO Mark Zuckerberg manage tax liabilities related to California's wealth tax while incentivizing long-term performance.
Why it matters
This unique dividend structure creates a direct link between executive performance and shareholder equity, potentially setting a new precedent for how tech giants manage executive compensation and tax planning.
Mark Zuckerberg is the founder and CEO of Meta. Bloomberg/Getty Images Meta will give its investors free shares if Mark Zuckerberg hits certain "extraordinary" targets. It will pay 1:1 share dividends each time Meta stock doubles and has compounded at over 10% a year. Meta is rolling out Class C shares to address Zuckerberg's tax concerns and keep him in California. Meta stockholders are set to receive free shares if Mark Zuckerberg absolutely crushes it as CEO. The social-media giant revealed in a Wednesday filing that if its upcoming Class C shares double from a baseline price of $580.60 to just over $1,161, and their compound annualized return since September 10 has been at least 10%, shareholders will receive a dividend: a Class C share for every Meta share they own.
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