Mark Zuckerberg is set to remain in charge of matters at Facebook for many more years.
Facebook has approved the creation of 5.7 billion new shares of Class C stock that will keep its CEO Mark Zuckerberg in control as long as he is associated with the social networking giant.
According to reports, the decision was taken at its annual shareholders’ meeting on Monday. This move will help Zuckerberg keep voting control and allow him and his wife Dr Priscilla Chan to boost philanthropic activities without diluting the voting control.
“I am planning on running the company for a very long time,” Zuckerberg told the members during the question and answer session of the meeting.
This business decision favouring Mark means for every share of Class A or B stock an investor owns, Facebook will offer them two Class C shares as a one-time dividend. Class C stock does not come with shareholder voting power.
Zuckerberg owns about four million of Class A shares in Facebook and approximately 419 million Class B shares. Each Class B share is worth 10 votes apiece which gives Zuckerberg majority voting power and control over Facebook’s strategic direction.
(With agency inputs)
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