Facebook has introduced a dual-class stock structure to let current shareholders hold onto voting control, The Wall Street Journal reports. The structure will raise the voting power of Mark Zuckerberg, the company’s CEO and other existing shareholders if they hold onto their shares during an initial public offering (IPO).
Facebook will change existing holdings to Class B stock, which carries 10 times the voting power of Class A stock. These shares will remain Class B unless the owner sells them following an IPO, after which they will become Class A shares.
Click here for additional coverage.
