Zuckerberg agrees to stay in California, Meta creates nonvoting shares
Meta CEO Zuckerberg will remain in California for eight years, allowing him to sell new nonvoting shares to cover a possible 5% billionaire tax.
Key facts
- Zuckerberg agreed to stay in California for eight years, per a regulatory filing.
- Meta will issue a new class of nonvoting shares that Zuckerberg can sell to pay potential taxes.
- The agreement allows him to sell 20% of those shares immediately, with the rest available over eight years.
- Proposition 40 would impose a one‑time 5% tax on assets held by billionaires in California as of January 2026.
- Zuckerberg had planned to list his Palo Alto home for sale before the agreement.
Meta CEO Mark Zuckerberg will remain in California for eight years, according to a regulatory filing released Wednesday.
The decision follows a potential billionaire tax measure that could cost billions.
Zuckerberg had planned to list his Palo Alto home for sale four days later.
The filing was submitted after a board dinner on September 9.
Proposition 40 would impose a one‑time 5% tax on stock and other assets held by billionaires in California as of January 2026.
The measure could be subject to lawsuits even if voters approve it.
Many wealthy individuals avoid taxes by borrowing against shares and taking low salaries.
Zuckerberg’s annual salary is $1, according to the filing.
Meta will create a new class of nonvoting shares.
All existing shareholders will receive these shares automatically in proportion to their holdings.
Zuckerberg can sell 20% of the new shares immediately to pay taxes.
The remaining 80% can be sold in chunks over eight years as long as he stays in California.
The agreement links Zuckerberg’s ability to sell shares to his residence in California.
The special committee, including Robert Kimmitt, Charlie Songhurst, and Tony Xu, reached the deal within days of the dinner.
The plan allows Meta to raise funds for AI data center investments without diluting Zuckerberg’s voting control.
The agreement also states that Zuckerberg must remain wherever Meta’s headquarters are located.
Context
California voters are set to decide Proposition 40, a one‑time 5% tax on assets held by billionaires.Meta’s CEO was about to list his Palo Alto home for sale, a move that could trigger the tax.To keep his voting control, Meta created a new class of nonvoting shares that he can sell to cover potential tax liabilities.
How outlets headlined it
How this was made
Compiled by our AI newsroom from 2 independent outlets, checked by a separate AI editor against the sources. Only claims found in the sources are reported. Spot an error? Every source is linked below.
Correction or source request? simoneggert16@gmail.com
Open reader debate: Factual contributions and additions are synchronized directly in real time across all readers.
Loading contributions from cloud server…
Reader Discussion & Community Notes