Meta Board Approves Non-Voting Class C Stock, Letting Zuckerberg Sell Shares to Cover Proposed California Billionaire Tax

Meta's board approved a new class of non-voting Class C common stock, effective in January, structured as a one-for-one stock dividend equivalent to a two-for-one split. The company said it will use the shares for capital raising, employee compensation and acquisitions, including its AI push, while preserving the voting structure that gives founder and CEO Mark Zuckerberg roughly 60% of the vote. Citing a recent SEC filing, the New York Times reported the class also lets Zuckerberg sell up to 20% of the Class C shares he receives — 10% of his overall economic stake — for any reason, including paying his liability under California Proposition 40 without diluting his majority voting control. The measure would impose a one-time 5% wealth tax on several hundred California billionaires, raising as much as $100 billion over five years, with most proceeds directed to healthcare. Zuckerberg's potential liability has been estimated at as much as $11 billion. Google co-founder Sergey Brin has campaigned against the proposal.