Meta Creates Nonvoting Class C Stock to Keep Zuckerberg in California Amid Billionaire Tax Threat

Meta's board approved a new class of nonvoting Class C stock, effective in January, designed to preserve CEO Mark Zuckerberg's voting control even if he must sell shares to pay a proposed California billionaire tax, according to a regulatory filing. Zuckerberg, who holds roughly 60% of Meta's voting power despite owning about 13% of total shares, had told the board in September he planned to list his Palo Alto home for sale. The proposal, Proposition 40, would impose a one-time 5% tax on the assets of California billionaires to fund healthcare. Under the deal, Zuckerberg could sell or transfer up to 20% of Class C stock without diluting his majority voting stake, which is tied to Meta's dual-class structure giving Class B shares 10 votes each. Zuckerberg, whose net worth exceeds $200 billion, could face a tax liability of roughly $12 billion. Meta shares have risen more than 1,700% since its public debut. More than $300 million has been contributed to oppose the measure.