Facebook proposes new shares to keep Zuckerberg control
- 8 years ago
Facebook's board of directors has voted to create a new class of shares, a "C" class, that will have no voting rights in a bid for CEO and founder Mark Zuckerberg to remain active and retain control of the tech giant.
If the proposal is approved, the shares will be issued as a one-time dividend, two shares apiece to Class A and Class B class common stock holders.
The company announced the three-for-one stock split to create a new class of non-voting shares in a filing Wednesday at the same time that it announced first-quarter earnings.
With the split, Facebook shareholders will receive two non-voting shares for each single share they hold.
The move lets Zuckerberg sell Class C shares to fund philanthropic endeavors without losing voting control of Facebook.
If the proposal is approved, the shares will be issued as a one-time dividend, two shares apiece to Class A and Class B class common stock holders.
The company announced the three-for-one stock split to create a new class of non-voting shares in a filing Wednesday at the same time that it announced first-quarter earnings.
With the split, Facebook shareholders will receive two non-voting shares for each single share they hold.
The move lets Zuckerberg sell Class C shares to fund philanthropic endeavors without losing voting control of Facebook.