Meta gives Zuckerberg sellable shares to keep him in California
Meta Platforms struck a deal with Mark Zuckerberg after he warned he might leave California over Proposition 40, a one-time 5 percent tax on billionaires. He must stay a resident for eight years.
Under the deal, Zuckerberg receives non-voting shares that he can sell. This could help him pay a multi-billion-dollar tax bill. He can sell 20 percent of the Class C shares straight away, which equals 10 percent of his overall economic stake.
He commits to remain a California resident, or live wherever Meta keeps its headquarters, for eight years. A Meta filing with the US Securities and Exchange Commission says he told a board special committee he was evaluating a move of his primary residence out of the state.
The committee concluded it was "critically important" that Zuckerberg stay in a leadership role and manage the company from its California headquarters. Meta said in the filing that his voting power could drop to approximately 53 per cent or lower if he must sell a large part of his shares to pay higher taxes. He now holds more than 60 per cent of the votes, mostly through super-voting shares.
Californians vote on Proposition 40 on 3 November. Political analysts say it is far from certain to pass.
Key facts
- Who
- Mark Zuckerberg (CEO of Meta); Meta (technology company; Zuckerberg's employer, which filed the securities document); California Legislative Analyst's Office (state office that described the number of billionaire residents); Meta Platforms, Inc. (filer of the Form PRE 14C)
- What
- Meta CEO Mark Zuckerberg will receive a new chunk of shares and has agreed to remain in California for at least eight more years, according to a securities filing. Californians will vote in November on Proposition 40, which could impose a one-time five percent tax on billionaires' wealth.
- When
- 22 October 2026
- Where
- California, Hong Kong
- Status
- Reported