Meta strikes deal to keep Zuckerberg in California after wealth tax concerns
Meta will issue non-voting shares so Zuckerberg can raise cash for a potential tax bill while keeping control and leading the company for eight more years.
- 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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The technoligarch manages to get Meta to help him face a possible multimillion dollar tax bill and is committed to staying in California for eight years, even if the state approves a wealth tax Mark Zuckerberg threatened to sell his home and leave Silicon Valley. But Meta’s board of directors has modified its equity structure to make it easier for him to pay the tax, should voters approve it.
Mark Zuckerberg cam close to putting California in his rearview mirror over a proposed wealth tax, newly released regulatory reporting show. Meta's board worked out a 2-for-1 stock split and a new class of nonvoting shares to fund its AI push, after Zuckerberg told directors he was weighing a move...
Zuckerberg Says He May Leave California Over a 5% Billionaire Tax
When Mark Zuckerberg privately told Meta's board he planned to sell his Palo Alto home and leave California, the board did not try to change his mind. It rewrote the company's stock structure instead.
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...
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