Zuckerberg wins Meta deal to help him foot bill for possible California billionaire tax

Meta has struck a deal with its chief executive, Mark Zuckerberg, to secure his continued presence in California despite a proposed billionaire tax. The agreement grants Zuckerberg additional shares in Meta to compensate for any potential loss of wealth if the tax passes in November. The California tax would impose a 5% one-time levy on residents with a net worth exceeding $1 billion, potentially forcing Zuckerberg to pay around $10 billion in additional state taxes.

Zuckerberg secured the deal through negotiations described as "robust" and "contentious" by a special committee of Meta. The company announced a stock split, creating a new type of stock and giving one new share to each existing shareholder, enabling Zuckerberg to more easily cash in on Meta's value. The deal remains in effect for eight years, as long as Zuckerberg remains a California resident.

Meta sees this agreement as crucial to keep Zuckerberg leading the company, given the rapid transformations in the tech industry and global economy due to artificial intelligence.