Zuckerberg told Meta directors he might leave California, where he could lose billions to a wealth tax. Meta answered with a new class of stock

Meta CEO Mark Zuckerberg discussed the possibility of leaving California, where he might face a large wealth tax, during a meeting with board members. In response, Meta announced plans to issue a new class of stock called Class C shares. These shares, distributed as a one-for-one stock dividend, come with no voting rights and are designed to help Zuckerberg maintain control over the company, fulfill his pledge to fund the Chan Zuckerberg Initiative, and pay potential California wealth tax.

The new Class C shares will allow Zuckerberg to pay employees, fund acquisitions, and raise capital without losing his majority voting control or having to sell his Class B shares, which carry 10 votes per share. Zuckerberg currently holds about 60.6% of voting control and 13.4% of the company's shares. The new Class C shares will enable him to sell 20% now and the remaining 80% only if he sells or converts an equal number of his voting shares.