Meta strikes deal to keep Zuckerberg in California after wealth tax concerns
Meta said the new nonvoting shares could let Zuckerberg cover a potential tax bill while preserving his control as the company expands its AI spending.
- Meta CEO Mark Zuckerberg has agreed to maintain his Silicon Valley residence for eight years under a new 'Founder Alignment Agreement' linking his ability to sell company shares to continued California residency.
- During a September 9 dinner, Zuckerberg informed board members he was considering leaving California because of Proposition 40, which proposes a one-time 5 percent tax on billionaire assets held as of January 2026.
- Under the agreement, Zuckerberg can sell 20 percent of new nonvoting shares to cover taxes, while the remaining 80 percent becomes available in chunks over eight years if he remains in California.
- While Google cofounders Sergey Brin and Larry Page reportedly exited California over tax concerns, recent polling suggests Proposition 40 will fail after about $129 million in campaign spending against it.
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Meta warned Wednesday that its director general, Mark Zuckerberg, could leave California if the state adopts a tax on the fortune of billionaires. The company stated that Zuckerberg informed the committee...
META is offering Mark Zuckerberg a financial incentive to stay in California. He was considering leaving because of the potential introduction of a wealth tax, which the company wants to prevent.
California's planned Reichensteuer could cost Mark Zuckerberg a fortune and endanger its power at Meta. Therefore, the Facebook parent company has reached an unusual agreement with its founder, which is supposed to solve several strategic problems.
Meta CEO Mark Zuckerberg has threatened to leave California if the state passes a planned wealth tax, the company said Wednesday.
Meta wants to keep founder and CEO Mark Zuckerberg in California, where the company is headquartered, for the next eight years. In return, he will receive additional non-voting shares, according to stock exchange documents.
Meta Platforms, the parent company of Facebook and Instagram, has reached an agreement with Mark Zuckerberg to allow him to reside in California for another eight years, after he considered relocating due to concerns about a proposed wealth tax.
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