Zuckerberg's California exit threat sparks Meta stock move
Mark Zuckerberg warned he could leave California if California enacts a billionaire tax, according to Politico. The new tax, which would impose a 5% tax on state residents with a net worth over $1 billion, has not yet passed. Zuckerberg owns a small percentage of Meta's total economic value but controls most of its voting power due to some of his shares having extra votes.
Meta has agreed to a deal with Zuckerberg to prevent him from leaving California, allowing him to sell shares without losing control. Meta has introduced a new class of non-voting shares, called Class C stock, which Zuckerberg secured through negotiations. These shares will have no voting rights, and Meta will distribute one Class C share for every existing Class A or Class B share.
Zuckerberg agreed to remain a California resident for eight years, but if Meta moves its headquarters to another state, he will do the same.
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