Meta strikes deal to keep Mark Zuckerberg in California after wealth tax concerns

Meta CEO Mark Zuckerberg will receive additional shares in the company he established, in exchange for agreeing to remain in California for at least eight more years. This comes as California voters prepare to decide in November whether to approve a temporary tax on wealth held by billionaires residing in the state. Meta disclosed the deal in a securities filing alongside its quarterly earnings report, outlining the offer of a new class of nonvoting shares and a one-time increase for all existing shareholders, including Zuckerberg, who at year-end 2025 owned over 342 million Meta shares, most of which are super-voting shares.

This provides Zuckerberg with more than 60% control over the company, according to the filing related to its annual report. Meta expressed worry that Zuckerberg's voting power could decrease to approximately 53% or less if he needs to sell a significant portion of his shares to pay higher taxes. The agreement is designed to allow Zuckerberg the option to sell shares without substantially reducing his voting power, should California voters approve Proposition 40.

This proposition, if passed, would impose a one-time five percent tax on billionaires, with 90% of the proceeds allocated for healthcare services. With around 39 million residents in California, only a few hundred individuals have a net worth of $1 billion or more, according to the California Legislative Analyst’s Office. Notable tech billionaires like Google founders Sergey Brin and Larry Page, and PayPal and Palantir co-founder Peter Thiel, have already left California, while Nvidia CEO Jensen Huang has dismissed concerns, stating that he is comfortable paying taxes.