Facebook investors OK new share class to keep Zuckerberg at helm

Facebook Inc shareholders approved a proposal to create a new class of non-voting shares, a move aimed at letting Chief Executive Officer Mark Zuckerberg give away his wealth without relinquishing control of the social media company he founded.

Reuters| Updated: Jun 21, 2016, 01:46 AM IST

Facebook Inc shareholders approved a proposal to create a new class of non-voting shares, a move aimed at letting Chief Executive Officer Mark Zuckerberg give away his wealth without relinquishing control of the social media company he founded.

The company`s plan to issue two "Class C" shares for each Class A and Class B share held by shareholders, in what is effectively a 3-for-1 stock split, was approved by Facebook shareholders at the company`s annual general meeting on Monday.

The Class C shares will be publicly traded under a new symbol.

Zuckerberg said in December that he intended to put 99 percent of his Facebook shares into a new philanthropy project focussing on human potential and equality.

The creation of the Class C shares would allow Zuckerberg to sell the non-voting stock, but keep the voting Class A and Class B shares that would let him retain control of Facebook.

Zuckerberg plans on running Facebook "for a very long time", the 32 year-old CEO told shareholders at a Q&A session at the AGM.

Shareholders also approved the continued tenure of all the eight board members, including billionaire investor Peter Thiel, who were up for re-election.

Facebook announced the plan to create the new class of non-voting shares on April 27. The approval of the plan was virtually certain since Zuckerberg controls the company.