Meta Creates Non-Voting Class C Shares to Retain CEO Zuckerberg in California

Meta Platforms has structured an agreement with Chief Executive Mark Zuckerberg creating non-voting Class C common stock to cover potential liabilities from California's proposed Proposition 40 wealth tax while preserving his voting control. Zuckerberg committed to maintaining California residency for at least eight years. The arrangement comes after Zuckerberg evaluated relocating his residence outside California to avoid the proposed 5% billionaire tax, which analysts estimate could trigger an $11 billion to $12 billion liability on his estimated $240 billion to $246 billion net worth. Meta will issue the shares in January 2027 as an effective two-for-one split.