Meta said it has reached an agreement with CEO Mark Zuckerberg under which the company will grant him saleable non-voting shares to cover potential tax liabilities if California’s Proposition 40 is approved next month. The proposal would impose a one-time 5% wealth tax on billionaires in the state, and Zuckerberg had previously said he was considering leaving California if it passes. In return for the share arrangement, Zuckerberg agreed to live in California or where Meta is headquartered for eight years. Meta said Zuckerberg, whose net worth is about $240 billion, would be able to immediately sell 20% of the Class C shares he receives, equal to 10% of his economic interest in the company, while keeping voting control. The company also plans to issue new non-voting Class C common stock in January 2027, with an effect equivalent to a two-for-one stock split.
Meta said it has reached an agreement with CEO Mark Zuckerberg to grant him saleable non-voting shares that could be used to pay potential tax bills worth billions of dollars if California’s wealth tax proposal is approved.
In exchange, Zuckerberg agreed to live in California or where Meta is headquartered for eight years.
Tax proposal and share terms
Zuckerberg had previously said he was considering leaving California if Proposition 40, which is set for a vote next month, passes. The measure would impose a one-time 5% wealth tax on California billionaires.
Zuckerberg’s net worth is about $240 billion, according to the report. He would be able to immediately sell 20% of the Class C shares he receives, equal to 10% of his economic interest in Meta, while retaining voting control.
New Class C stock planned for 2027
Meta said it will issue new non-voting Class C common stock in January 2027, with an effect equivalent to a two-for-one stock split.
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