Meta Board Deal Lets Zuckerberg Pay California Wealth Tax While Keeping Control

Meta's board struck a deal allowing CEO Mark Zuckerberg to help pay a proposed California billionaires' tax without losing his majority ownership stake, according to regulatory filings published this week. The ballot measure, up for a vote in the election concluding Nov. 3, would impose a one-time 5% tax on California residents with net worth above $1 billion. Forbes estimates Zuckerberg's fortune at more than $220 billion, implying a liability exceeding $11 billion. The arrangement creates a new class of non-voting shares he may sell "for any reason," including tax payments, and commits him to remain in California for eight years absent "material unforeseen circumstances." The new share class is also meant to strengthen Meta's ability to raise capital for artificial intelligence infrastructure. Zuckerberg, who has taken a $1 salary since 2013, would receive no added compensation. Opponents including Gov. Gavin Newsom warn the tax could drive wealthy residents out; opponents' committee Building a Better California has raised over $333 million, while the "Yes on 40" campaign has raised $32.7 million.