Zuckerberg’s stock trick lets him keep control while paying taxes
A billionaire’s way to avoid losing power while still paying his taxes.
The story
Zuckerberg owns 13% of Meta but controls 61% of its votes. A California wealth tax would tax him on the 13%, forcing him to sell shares and lose control.
Source: fortune.com
Our reading
Zuckerberg’s new Class C shares are designed to let him pay taxes without losing power, but only if he sells 20% of them. That’s 10% of his total economic stake, which is still a lot of money. The board wanted him to stay in California, or wherever Meta is, for eight years. They didn’t want a remote CEO. But the real kicker is that he can sell shares to pay taxes, and still keep control. It’s like having a security blanket that also pays the rent. The system is built for people who want to be in charge, but also want to avoid the consequences of being rich.
