In brief
Meta has agreed to a deal with CEO Mark Zuckerberg to keep him in California as voters consider a 5% billionaire tax that could hit his fortune. The arrangement lets Zuckerberg sell shares without losing control if the tax is imposed. California will decide on the measure on November 3. Zuckerberg told the board he intended to stay but was ready to relocate his primary residence to avoid the tax. Meta said retaining Zuckerberg’s leadership is essential as the company ramps up AI development.
Meta Locks Down Zuckerberg, Keeps Him in California Over Billionaire Tax
Meta has struck a deal with CEO Mark Zuckerberg to prevent him from leaving California amid a proposed state tax targeting billionaires.
The agreement lets Zuckerberg sell shares in the company without ceding control if he has to pay a one‑time 5% tax on a net worth above $1bn.
California is voting on November 3 on the measure, which would cost residents like Zuckerberg a hefty bill. The deal was reached after tense negotiations with senior executives.
With roughly 225 billionaires located in the state, tech companies want to keep top talent in place. Zuckerberg told the board he still intended to stay for the foreseeable future, but was open to moving his main residence if a tax hit proved too high.
A special Meta committee said keeping Zuckerberg on its California headquarters was “critical”, especially as the company ramps up AI development.
“Zuckerberg’s leadership and vision have been crucial to Meta’s growth and stability,” the company said, noting the deal would keep him close to its AI initiatives.
