Key facts
- Shareholders will receive free Class C shares if Meta's Class C stock doubles from $580.60 to over $1,161 and achieves a 10% annual return.
- Further stock price increases to around $2,322 could trigger additional dividends.
- Meta described the stock price targets as 'extraordinary' in its filing.
- The company is restructuring its share classes in response to California's wealth tax.
Meta Platforms Inc. is set to reward shareholders with free shares if CEO Mark Zuckerberg achieves ambitious stock price targets. In a Wednesday filing, the social-media company stated that if its upcoming Class C shares double from a baseline of $580.60 to just over $1,161 and maintain a compound annualized return of at least 10% since September 10, shareholders will receive a dividend of one Class C share for every Meta share they own. Further increases to around $2,322 could trigger additional dividends. Meta acknowledged the difficulty of these targets, calling them 'extraordinary.' The company is also adjusting its share structure in response to California's wealth tax, allowing Zuckerberg to sell Class C shares for liquidity without reducing his voting power.