Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure

On September 9, Meta CEO Mark Zuckerberg discussed his potential departure from California with his board members due to Proposition 40, a ballot measure proposing a 5% tax on billionaires' assets. Zuckerberg intended to put his Palo Alto home on the market four days later. The ballot proposal, which could face legal challenges, was aimed at generating revenue for state use.

Many wealthy individuals, like Zuckerberg, currently evade substantial tax payments by borrowing against their shares and maintaining low salaries. Zuckerberg had recently purchased a Florida home, potentially prompting the cross-country move. A special committee of the board, including Robert Kimmitt, Charlie Songhurst, and Tony Xu, was concerned about the difficulties Zuckerberg faced during the COVID-19 pandemic when he couldn't be physically present with the company's management.

They reached an agreement that tied Zuckerberg's ability to sell special company shares to his continued residence in California. Meta plans to create a new class of shares with no voting power, which Zuckerberg can sell to help pay any taxes owed. He can sell 20% of these shares initially, with the rest available for sale over the next eight years as long as he remains in California.

The agreement also specifies that Zuckerberg just needs to remain where Meta's headquarters are located, potentially allowing both of them to relocate together.