Here’s Why Facebook Reversed Course on Last Year’s Stock-Reclassification Plan

Mark Zuckerberg feels that he can retain voting control while fully funding philanthropy

Hold that thought: Facebook’s board of directors announced Friday that the stock-reclassification proposed by the company last April has been withdrawn.

On the day Facebook reported its earnings for the first quarter of 2016, it also announced that its board approved a proposal to create a new class of non-voting capital stock, class-C capital stock, adding that if its proposal was approved, it would issue two class-C shares as a one-time dividend for each outstanding class-A and class-B share of common stock.

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