Meta Approves Stock Plan to Keep Mark Zuckerberg in California

Meta has agreed to let Chief Executive Officer Mark Zuckerberg remain in California for eight years under a board-approved plan designed to help him cover a proposed wealth tax without losing voting control of the company.

The regulatory filing published Wednesday revealed that Meta will issue a new class of non-voting common stock in January to protect Zuckerberg from potential multibillion-dollar tax liabilities if Proposition 40 passes on Nov. 3.

The ballot measure would impose a one-time 5% state tax on billionaire wealth, aiming to raise $100 billion for California's healthcare system while exposing deep divisions among the state's technology leaders.

"If the California wealth tax is enacted and Mr. Zuckerberg becomes liable for a tax payment, Mr. Zuckerberg would effectively be paying to serve as the Company's chief executive officer while residing in California," said Meta in the filing.

Zuckerberg warned company directors that the proposed levy could force him to sell voting shares and consider moving his primary residence out of California, according to the regulatory disclosures.

Meta officials emphasized that keeping the chief executive near the Menlo Park headquarters is critically important to drive company performance and support major investments in artificial intelligence infrastructure.

Under the newly approved agreement, Zuckerberg will receive non-voting Class C shares through a dividend and can immediately sell up to 20% of those shares to pay potential tax bills.

"There were many driving factors that led the board and special committee to approve the Class C shares, and it would be misleading to attribute it to any single reason," said Meta in a statement reported by CNBC.

Economists and political figures remain divided over the potential consequences of Proposition 40, with some warning that it could drive wealthy residents out of the state and reduce overall income tax collections.

Voters will decide the outcome of the ballot measure on Nov. 3, leaving the future of California's billionaire tax and its impact on corporate leadership unresolved.