Facebook Shareholders Endorse Zuckerberg’s Class C Stock Plan
Facebook’s investors have endorsed a plan to keep CEO Mark Zuckerberg in control of the social networking company, no matter how many shares the philanthropist decides to give away to charity.
Shareholders have approved the creation of a new class C stock that hands Zuckerberg “founder control” for as long as he wishes to remain in charge of the company he co-founded.
Under the plan, each outstanding Class A and Class B share held by stockholders, would be replaced with two new Class C shares as a one-time stock dividend. The Class C shares will have the same economic rights as the existing Class A and Class B shares, but the Class C shares are non-voting.
There was little comment on the transaction at Monday’s investor meeting, although Zuckerberg did say he plans to be “involved in and running Facebook for a very long time.”
Now that investors have given the go-ahead to the new stock plan, Zuckerberg will be able to move ahead with his plan to give his wealth to charitable causes.
Zuckerberg and his wife Dr. Priscilla Chan, after the birth of their first child last year, announced plans to give 99 percent — about $45 billion — of their Facebook shares away in a bid to make the world a better place for their daughter to grow up in. The Chan Zuckerberg Initiative will be the vehicle to drive these goals and, in a filing with the SEC, it was revealed Zuckerberg planned “to sell or gift no more than $1 billion of Facebook stock each year for the next three years.”
“Right now, there are amazing scientists, educators and doctors around the world doing incredible work. We want to help them make a bigger difference today, not 30 or 40 years down the road,” Zuckerberg wrote in a blog post back in April. “… we’ll get to keep improving your Facebook experience the way we do today. And over the long term, I think you’ll have better services and be part of a stronger community as a result. I believe in our community and the good we can do in the world, and I’m looking forward to continuing this journey with you.”