Meta Approves Nonvoting Stock Class to Let Zuckerberg Fund Potential California Wealth Tax

Meta Platforms Inc. (META) approved a new class of nonvoting stock that could let CEO Mark Zuckerberg raise billions of dollars to cover a potential California wealth tax without losing his majority voting control. The Class C common stock, effective in January, grants shareholders one new nonvoting share for each Class A or Class B share owned, effectively a two-for-one split. Meta said the shares could also fund capital raising, employee compensation and acquisitions, including artificial intelligence investments. An SEC filing said Zuckerberg could immediately sell or transfer up to 20 percent of the Class C shares he receives — equal to 10 percent of his overall economic stake — including to meet potential liabilities under California Proposition 40. The proposed measure would impose a one-time 5 percent wealth tax on certain California billionaires. Zuckerberg could reportedly face a tax bill of as much as $11 billion if the measure is approved.