Business · Companies · 1 hr ago
Zuckerberg agrees to stay in California amid proposed billionaire tax
Meta CEO Mark Zuckerberg agreed to stay in California under an arrangement with the company, a regulatory filing says.
California voters are due to decide next month on Proposition 40, a proposed one-time tax on billionaires’ assets held in the state as of January 2026.
The proposal would tax those assets at 5 percent if voters approve it.
Zuckerberg had considered leaving California because of the measure and planned to list his Palo Alto home for sale, the filing says.
Meta will create nonvoting shares that Zuckerberg can sell to help pay any tax he owes, while keeping his voting control of the company.
He can sell 20 percent of the shares for taxes, with the rest available over eight years if he stays where Meta has its headquarters.
Meta wants him near its Silicon Valley AI teams, which the company says are important to its work and leadership.
The agreement could change if Meta moves its headquarters or unforeseen circumstances make it advisable for Zuckerberg to live elsewhere.
Mark Zuckerberg agreed to remain in California for eight years under an agreement tied to his ability to sell a new class of Meta shares.
He had considered leaving the state because of a proposed one-time tax on billionaires’ assets.
California voters are due to decide on Proposition 40 in November.
Meta says the nonvoting shares will help it raise capital and pay employees while preserving Zuckerberg’s voting control.
The agreement also allows Zuckerberg to sell some of the shares to cover taxes if the measure passes.
- Who
- Meta CEO Mark Zuckerberg and Meta.
- What
- Zuckerberg agreed to remain in California for eight years under an agreement linked to selling a new class of nonvoting shares.
- When
- The agreement was finalized about a week before Meta announced it on October 21, 2026.
- Where
- California, where Meta is based near Silicon Valley.
- Why
- Zuckerberg had considered leaving because of a proposed billionaire tax, while Meta’s board wanted him to keep leading the company near its AI division.
Mark Zuckerberg
Meta special committee
Residence
Mark Zuckerberg
Zuckerberg told board members he was considering leaving California because of the proposed tax.
Meta special committee
The committee wanted him to remain in California and close to Meta’s AI division.
Share sales
Mark Zuckerberg
The agreement lets Zuckerberg sell some new shares while keeping his voting control, including to pay potential taxes.
Meta special committee
The agreement links sales of most of the shares over eight years to his continued residence in California.
Zuckerberg told Meta board members at a dinner that he was considering leaving California and planned to list his Palo Alto home for sale.
Zuckerberg and the special committee reached an agreement linking sales of special shares to his continued residence in California.
The agreement was finalized.
Meta announced the new class of nonvoting shares and disclosed details of the agreement.
- Stay commitment
- Eight years in California
- Proposed measure
- Proposition 40
- Proposed tax
- One-time 5% tax on assets held by billionaires in California as of January 2026
- Potential tax liquidity
- $20 billion in immediate liquidity from share sales, according to Business Insider
- Share class
- New Meta shares with no voting power
- Agreement
- Zuckerberg may sell 20% of the new shares for taxes; the remaining 80% can be sold in chunks over eight years if he remains in California
6 sources
This wonky maneuver kept Mark Zuckerberg from fleeing a California billionaire tax
Zuckerberg cogitou sair da Califórnia por imposto sobre bilionários
Zuckerberg told Meta directors he might leave California, where he could lose billions to a wealth tax. Meta answered with a new class of stock
Mark Zuckerberg considered leaving California over the billionaire tax
Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure
What people are saying
The goal is to keep Mr. Zuckerberg continuing to lead the Company from California
The goal is to keep Zuckerberg continuing to lead the company from California and in close proximity to Meta Superintelligence Labs
The special committee was mindful about the difficulties the company faced during the COVID-19 pandemic when Zuckerberg could not be physically present with the company’s management team and did not want the company to face similar challenges going forward