Meta board placates Zuckerberg after threat to leave California if voters approve wealth tax measure
Meta Platforms has struck a deal with Mark Zuckerberg, Reuters has reported, in a move spurred by a California ballot measure, part of the Nov. 3 midterm elections, that has sparked heated debate and hundreds of millions in campaign spending.
Meta, the parent company of Facebook, WhatsApp, and Instagram, has announced a plan to give its investors free shares if its CEO, Mark Zuckerberg, achieves certain extraordinary targets. If Meta's stock doubles in value and maintains a compound annualized return of at least 10%, shareholders will receive a Class C share for each Meta share they own.
This dividend will be paid multiple times, with the share price needing to double again to reach roughly $2,322, and continue to rise by at least 10% annually. Meta acknowledged that these targets are extraordinarily difficult to reach, but they are being implemented due to concerns about California's billionaire tax. Zuckerberg, the fifth wealthiest person in the world with a net worth of $247 billion, could use the free shares to sell to meet his tax obligations while retaining voting power.
The company expects to distribute these additional dividends alongside the initial one declared on Wednesday, likely in late January.
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