Zuckerberg Strikes Deal to Stay in California: Non-Voting Shares to Cover a Potential Wealth Tax, in Exchange for an Eight-Year Commitment
CALIFORNIA — Meta Platforms has struck a deal with chief executive Mark Zuckerberg to keep him living in California after he warned he was considering leaving the state that houses the company's headquarters if voters pass a wealth tax proposal next month, according to Reuters.
Under the deal, disclosed on Wednesday, Zuckerberg will receive non-voting shares he can sell to potentially foot a multi-billion-dollar tax bill if the proposal is approved, in exchange for a commitment to remain a resident of California, or wherever Meta maintains its headquarters, for eight years.
The trigger is Proposition 40, a ballot measure dubbed the California wealth tax that would impose a one-time 5% tax on the state's billionaires. Political analysts say its passage is far from certain. California is home to as many as 250 billionaires collectively worth upwards of $2 trillion.
Zuckerberg, the world's sixth-richest person according to Forbes, with a net worth of about $240 billion, told Meta the measure could expose him to a massive tax liability, potentially forcing him to sell voting shares to pay it. Under the arrangement, Meta will issue a new class of non-voting Class C common stock in January 2027, effectively a two-for-one split. Zuckerberg 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. The company said the Class C shares would also fund acquisitions and retain top talent while maintaining his control.
A special committee of Meta's board concluded it was critically important that Zuckerberg remain in a leadership role and continue to manage the company from its California headquarters during what it described as unprecedented challenge and competition driven by SI. Meta's long-term forecasts, as described in the filing, showed it would need to raise hundreds of billions of dollars over several years, beginning as early as fall 2026, to finance its SI-related growth plans.
Published by GSM · USA (original Chinese edition)
Photo: 扎克伯格2025年照片（Jeff Sainlar 为 Meta 拍摄，CC BY-SA 4.0，经 Wikimedia Commons）。 / Mark Zuckerberg in 2025 (photo by Jeff Sainlar for Meta, CC BY-SA 4.0, via Wikimedia Commons).
