Meta Strikes Share Deal With Zuckerberg as California Billionaire Tax Vote Nears

Meta has agreed a deal with Mark Zuckerberg aimed at keeping him from leaving California, after he threatened to move over a proposed tax on the state's very wealthy residents. BBC reported that the arrangement lets Zuckerberg sell Meta shares without losing control of the company if he needs to pay a large tax bill.

The tax at the centre of the dispute is a proposed California measure that would impose a one-time 5% tax on state residents with a net worth above $1bn. Californians will vote on it on 3 November, and it has not yet passed.

Under the deal, Zuckerberg would receive non-voting shares, which carry no say in company decisions, and could sell them to pay the tax bill. Yahoo Finance reported that his potential liability under the proposal is a multi-billion-dollar tax bill. Fortune reported that Meta addressed the possibility of his departure by creating a new class of stock.

According to a Meta filing, Zuckerberg threatened to sell his $110 million California home over the proposed tax. Yahoo Finance reported the disclosure.

Zuckerberg told Meta's board that he intended to remain with the firm for the foreseeable future, but that he was evaluating moving his primary residence outside California. He reached the deal with a special committee of the board, after negotiations that were described as robust and, at several points, contentious.

The committee said it was critically important to keep Zuckerberg in a leadership role and in California, where he can manage the company from its headquarters. Meta said the share arrangement was appropriate to ensure he continues to work closely with the company's artificial intelligence efforts at headquarters.