Meta share deal aims to keep Zuckerberg in California

Meta has reached an agreement intended to keep chief executive Mark Zuckerberg in California after he warned that a proposed billionaire wealth tax could prompt him to move out of the state. BBC News reported on 22 October that the arrangement would allow him to sell Meta shares to meet a large tax bill without surrendering control of the company.

The proposal has not passed. California residents are due to vote on 3 November on a one-time 5% tax targeting state residents with net worth above $1 billion. The share arrangement therefore addresses a potential tax liability, rather than a levy already in force.

A possible move put before the board

Zuckerberg told Meta’s board that he intended to stay with the company for the foreseeable future, but was considering moving his primary residence outside California. His warning concerned where he would live, not an announced departure from Meta.

He argued that putting his home up for sale would attract public attention and discussion among employees, creating questions about the company’s future management.

A special board committee negotiated the agreement with him in discussions described as robust and, at times, contentious. The committee concluded that retaining Zuckerberg in a leadership position and having him manage Meta from its California headquarters were particularly important amid intense industry competition.

Meta ties the arrangement to its AI ambitions

Meta linked the share deal to keeping Zuckerberg closely involved with its artificial intelligence work at headquarters. The company credited his leadership with shaping its growth, strategy and stability, as technology businesses worldwide commit billions of dollars to AI development and supporting infrastructure.

The reported arrangement preserves Zuckerberg’s control if he needs to sell shares to pay tax; it is not described as an exemption from the proposed levy.

Forbes’ billionaire tracker put Zuckerberg’s fortune at $226 billion, according to the report. The campaign group Americans for Tax Fairness estimated that roughly 225 billionaires live in California, a state that hosts many of the largest US technology companies. Neither figure establishes what Zuckerberg’s eventual tax bill would be.