Meta investors will get free shares if Mark Zuckerberg hits 'extraordinary' targets
Meta stockholders will receive a dividend every time the stock doubles and has compounded by at least 10% a year.
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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