Facebook Inc. investors approved a proposal to issue 5.7 billion shares of Class C stock during the company’s annual shareholder meeting Monday.
The move is intended to ensure Chief Executive Mark Zuckerberg will maintain control of the social media giant he co-founded. Zuckerberg, who said he plans to donate a substantial amount of Facebook shares, will now be able to do so without diluting his voting power.
The shift gives current shareholders a 3 for 1 stock split, which means for every share of Class A or B stock an investor owns, Facebook will offer them two Class C shares as a one-time dividend. Class C stock does not come with shareholder voting power.
“I plan on being involved in and running Facebook for a very long time,” Zuckerberg told investors in attendance, which led to a round of applause.
In addition to the Class C stock issuance, shareholders voted to reelect Facebook’s board of directors, including Peter Thiel, the PayPal co-founder who secretly bankrolled wrestler Hulk Hogan’s lawsuit against Gawker Media.
Facebook shares finished the day up 35 cents, or 0.31%, to $113.37.
MORE BUSINESS NEWS
2:08 p.m.: This article was updated with Facebook’s stock price after the close of markets.
12:16 p.m.: This article has been updated with additional details.
This article was originally published at 11:54 a.m.