Meta CEO Zuckerberg weighed leaving California over billionaire tax, then agreed to stay
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The gist
Meta CEO Mark Zuckerberg weighed leaving California over a proposed billionaire tax, then agreed to stay eight years.
The deal keeps the world's fifth-richest person in the state.
Background
Mark Zuckerberg is Meta Platforms' chief executive and controlling shareholder, and the world's fifth-richest person with a net worth of US$247 billion per the Bloomberg Billionaires Index. California voters are set to decide Proposition 40 in November, a ballot measure imposing a one-time 5% levy on the stock and other assets of residents whose net worth exceeded $1 billion as of Jan 1, 2026, pushed by a healthcare workers union and progressive politicians including Congressman Ro Khanna. Zuckerberg warned the proposal could force him to sell down his Class B common stock, leaving him with less than 53% voting interest, and raised the possibility of moving. Meta responded with a new class of non-voting shares and an agreement that he remain a California resident for eight years.
How it unfolded
- Jul 2026Zuckerberg briefly discussed the upcoming election with Robert M. Kimmitt, Meta's lead independent director, warning the proposal could force him to sell down his Class B common stock and leave him with less than 53% voting interest.
- Jul 2026Zuckerberg again raised Prop 40, voicing concerns about whether it might affect his ability to stay a California resident.
- Jul 2026The following week, Zuckerberg's lawyers sent a letter asking for a pay package similar to those made to other tech founders, partly so he could pay a potential tax bill.
- Jul 2026Within weeks, his legal counsel sent a letter to a special committee of the board warning he was considering leaving California and suggesting Meta create a class of non-voting stock to raise equity capital for its AI ambitions.
- Aug 5, 2026The committee met again but viewed the 20-for-1 proposal as "excessive."
- Late Aug 2026All sides were dug in after proposals were issued and objected to; committee members discussed dissolving the committee or resigning from the board if Zuckerberg wouldn't make concessions for the benefit of all Class A shareholders.
- Sep 9, 2026At a dinner with directors, Zuckerberg raised the possibility of moving and said he intended to list his Palo Alto residence for sale four days later.
- Sep 13, 2026Zuckerberg planned to list his Palo Alto estate for sale.
- Oct 21, 2026Meta disclosed in an SEC filing that Zuckerberg told directors in September he was considering leaving California over Proposition 40 and planned to list his Palo Alto home; the filing said he would remain a California resident for eight years.
- Nov 3, 2026California voters are set to vote on the proposed wealth tax, Proposition 40.
- Jan 2027Trading in the new Class C shares is scheduled to begin.
Who’s saying what
- Official
- Meta's filing says the goal is to keep Zuckerberg leading the company from California, and that he will remain a resident of California or any other jurisdiction where the company keeps its headquarters for eight years.
- Official
- The board's special committee said keeping Zuckerberg working from headquarters was "critically important," especially as he works closely with Meta Superintelligence Labs in the AI race, and cited the difficulties during the pandemic when he was away from the management team.
- Analysts
- A person familiar with the matter said the new $150 billion class of shares is also intended to raise capital, compensate employees and keep Meta's stock price on the right track.
Still unverified
Zuckerberg's agreement to stay is subject to "material unforeseen circumstances," according to the filing.