Meta offers Zuckerberg new shares to keep him in California

Meta Platforms has reached an agreement with CEO Mark Zuckerberg to keep him living in California for the next eight years, despite his initial consideration of leaving due to a proposed wealth tax. Under the deal, Zuckerberg will remain a resident of California or Meta's headquarters jurisdiction for the stipulated period, according to a filing on October 21.

The company has issued Zuckerberg non-voting Class C shares to address concerns over the potential tax bill, which could force him to sell his voting shares if enacted. He can immediately sell 20% of these shares, representing 10% of his overall economic stake, to provide liquidity for tax payments. The remaining 80% of Class C shares are initially restricted but become unrestricted over the eight-year period as long as Zuckerberg retains his leadership role at the company.

Zuckerberg, the world's fifth-richest person with a net worth of $247 billion, currently holds a substantial stake in Meta. The agreement comes as the company aims to maintain strong leadership in artificial intelligence research, emphasizing the importance of Zuckerberg working from Meta's headquarters.