Meta strikes deal to keep Zuckerberg in California amid wealth tax concerns

Meta Platforms has reached an agreement with its Chief Executive Officer, Mark Zuckerberg, to keep him in California despite concerns over a proposed 5% wealth tax targeting billionaires.

According to The Washington Times, Zuckerberg will receive a new class of shares that he could sell to cover potential tax liabilities without surrendering voting control of the company.

Under the agreement, Zuckerberg must remain a resident of California, or wherever Meta maintains its headquarters, for eight years.

The proposed tax, known as Proposition 40, will be decided by California voters in November and could affect more than 200 billionaires.

Meta explained that the new Class C shares would help “finance its growth and help the company remain a leader among fierce competition both domestic and international” during the artificial intelligence boom.

The company also emphasised Zuckerberg’s continued presence near its California operations, particularly Meta Superintelligence Labs, as essential to maintaining effective management coordination and advancing its AI ambitions.