Meta Platforms announced on Wednesday a new agreement with its chief executive, Mark Zuckerberg, to keep the company’s headquarters in California despite looming state wealth‑tax proposals. The deal gives Zuckerberg non‑voting shares that he can liquidate to meet a possible multi‑billion‑dollar tax bill if Proposition 40, the “California wealth tax,” passes next month.
Zuckerberg, the world’s sixth‑richest person according to Forbes, had warned the company he was considering moving his primary residence out of California if voters approved the measure. The proposal would levy a one‑time 5% tax on billionaires, potentially exposing Zuckerberg to a huge liability that could force him to sell voting shares to pay it.
Under the terms, Zuckerberg will receive a new class of non‑voting Class C common stock in January 2027, effectively creating a two‑for‑one split. He can immediately sell 20% of these shares, representing 10% of his overall economic stake, allowing him to cover a tax bill without losing voting control.
Meta said the arrangement is “critically important” for the company’s leadership continuity during what it described as an “unprecedented challenge and competition in our industry” driven by AI. The company’s long‑term forecasts indicate it will need to raise “hundreds of billions of dollars” over several years, starting as early as fall 2026, to finance its AI‑related growth plan.
Political analysts note that Proposition 40 is far from certain to pass, though California is home to roughly 250 billionaires with a combined net worth exceeding $2 trillion. Zuckerberg’s net worth is about $240 billion, giving him a significant stake in Meta’s future.
Meta’s board concluded that keeping Zuckerberg in a leadership role and at its California headquarters is essential for the company’s strategic direction. The agreement reflects the company’s effort to balance executive incentives with state tax policy uncertainties.
As the proposal moves forward, Meta will monitor the political landscape closely. The company’s next steps will likely involve further discussions with shareholders and state regulators to ensure compliance and stability.
