Meta’s new stock plan may help Zuckerberg pay California’s billionaire tax

Meta is introducing a new class of nonvoting stock to help Zuckerberg pay for California’s proposed “billionaire tax.” This class of stock, called Class C common stock, gives shareholders an ownership stake but no vote on company decisions. The stock plan takes effect in January and is being used to maintain voting control while raising capital, paying employees, and funding acquisitions. The New York Times reports that Zuckerberg is using the stock to pay for the tax, as selling nonvoting shares would not give up voting control. Proposition 40, a proposed wealth tax, would level a one-time 5% wealth tax on billionaires in California, and Zuckerberg was concerned about this tax, as it could cost him up to $11 billion.

The Times reports that Zuckerberg pushed Meta’s board to come up with a plan to protect him from the tax. The stock plan was created to help him pay for the tax without giving up voting control. The plan was developed after discussions with Meta’s board in July and August. The plan would allow Zuckerberg to sell or transfer up to 20% of the shares he receives in the dividend, representing 10% of his overall economic stake in the company. This would help him pay for the tax without losing control of Meta.

The filing says that the stock plan will not change the voting power of any shareholder. The plan would allow Zuckerberg to pay for the tax without losing control of Meta. The special committee affirmed its belief that it was important for Zuckerberg to continue to lead the company from California. Looks like billionaires will stay and figure out a way to pay the tax, but poor California kids can have healthcare if Prop 40 is passed.

The stock plan was created to help Zuckerberg pay for the tax without giving up voting control. The plan would allow him to pay for the tax without losing control of Meta. The special committee affirmed its belief that it was important for Zuckerberg to continue to lead the company from California. Looks like billionaires will stay and figure out a way to pay the tax, but poor California kids can have healthcare if Prop 40 is passed.