Meta Strikes Deal to Keep Zuckerberg in California Amid Wealth Tax Proposal

Meta Platforms has struck a deal with CEO Mark Zuckerberg to keep him living in California after he warned he was considering leaving the state if voters pass a wealth tax proposal next month. Under the agreement announced Wednesday, Zuckerberg will receive non-voting shares he can sell to potentially cover a multi-billion-dollar tax bill in exchange for committing to remain a California resident, or wherever Meta maintains its headquarters, for eight years. He can immediately sell 20% of the Class C shares he receives, representing 10% of his overall economic stake, allowing him to pay a potential tax bill without losing voting control. Proposition 40, a ballot measure imposing a one-time 5% tax on the state's billionaires, is far from certain to pass, political analysts say. Zuckerberg, the world's sixth richest person with a net worth of about $240 billion, told Meta the measure could force him to sell voting shares. Meta also said it will issue a new class of non-voting Class C common stock in January 2027, effectively a two-for-one split, to fund acquisitions and retain top talent while maintaining Zuckerberg's control.