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Facebook is adding a new class of stock that will help keep Zuckerberg in control


Facebook today, as part of its earnings release, said it would add a new class of non-voting stock for the company, which will keep Zuckerberg in control of the company..

“This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg’s long-term vision for our company and encourage Mr. Zuckerberg to remain in an active leadership role at Facebook,” the company said as part of the release.

With the restructuring, people that are buying into Facebook with what’s called “class C” stock will not have any voting rights. That gives Zuckerberg, who has control of the company, increased protection against agitation from investors and focus on Facebook’s core strategy.

Of course, that strategy has been working so far — the company showed a significant earnings beat today and its stock is up more than 8%. But if Facebook were to ever turn south, this would ensure that Zuckerberg is in control of the company’s strategy moving forward.

This isn’t unfamiliar territory. Google (now Alphabet) has also issued a dual-class structure that includes non-voting stock, further helping Sergey Brin and Larry Page maintain control of the company.

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