Mark Zuckerberg Gets to Control Facebook a While Longer

Yesterday Facebook announced earnings, which were good. They were so good, in fact, that Facebook also announced a little present for Mark Zuckerberg, the co-founder and chief executive officer who got it to this happy place. Facebook said that it will create a new class of common stock, Facebook’s third, to ensure that Zuckerberg can control Facebook as long as he wants to. Right now, Facebook has Class A stock, the normal publicly traded stock, with one vote per share, and Class B stock, mostly held by Zuckerberg, which has 10 votes per share. This structure, combined with a proxy agreement in which Zuckerberg gets to vote another shareholder’s B shares, gives him voting control of the company even though he only owns about 15 percent of it economically.

filed under: Uncategorised

0 thoughts on “Mark Zuckerberg Gets to Control Facebook a While Longer”

Comments are closed.