Zuckerberg agrees to stay in California after board stock deal

Summarised from 2 outlets · Updated 22 Oct, 00:20 · Archive

Meta CEO Mark Zuckerberg agreed to remain in California after the company's board offered him a stock arrangement to keep him from leaving over a proposed billionaire wealth tax.

Meta CEO Mark Zuckerberg threatened to leave California over Proposition 40, a ballot measure that would impose a one-time 5 per cent tax on assets held by billionaires as of January 2026. During a board dinner on September 9, Zuckerberg informed Meta directors he was considering relocating and planned to list his Palo Alto home for sale. The New York Post reported the property is valued at $110 million.

Zuckerberg's concern centred on voting control. His wealth of approximately $250 billion is largely tied to his 13 per cent ownership stake in Meta, which includes specialised Class B shares giving him majority voting rights. He stated that selling Class B stock to pay a potential $12.5 billion tax bill could reduce his voting interest to around 53 per cent. Zuckerberg has taken only a $1 annual salary since 2013, meaning he currently avoids significant tax payments by borrowing against shares.

Meta's board feared his departure would disrupt the company during its AI investments, recalling difficulties when he was absent during the COVID-19 pandemic. Within days, a special committee including attorney Robert Kimmitt, venture capitalist Charlie Songhurst, and DoorDash CEO Tony Xu negotiated an agreement finalised a week ago. Meta will create a new class of nonvoting shares that Zuckerberg can sell without diluting his voting control, potentially raising funds for AI data centre investments.

How it is being reported

• Mark Zuckerberg threatened to dump $110M California home over billionaire tax, Meta reveals in filingHe’s not Zucking around. Meta CEO Mark Zuckerberg held detailed negotiations with the tech giant’s board of directors about moving out of California if the state passes Prop. 40, a 5% wealth tax on billionaires — which could force him to liquidate huge chunks of stock, according to a new financial filing. CEO of Meta...New York Post · 22 Oct, 00:08
• Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot MeasureMeta’s board feared that its CEO’s departure could disrupt the company’s AI ambitions. A new stock agreement gives him financial incentives to stay put.Wired · 21 Oct, 23:39

In this story: Mark Zuckerberg · Meta · California · Robert Kimmitt · Charlie Songhurst · Tony Xu · Palo Alto

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