Meta Signs Deal With Zuckerberg to Stay in Headquarters State for Eight Years, Issues Class C Shares
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Meta Platforms Inc. has signed an agreement with CEO Mark Zuckerberg to keep him residing in the company's headquarters jurisdiction for eight years, after he said he was considering leaving California if a proposed wealth tax passed. Meta disclosed Wednesday that Zuckerberg will remain a California resident, or a resident of any other jurisdiction where the company is headquartered, for eight years. The company said Zuckerberg considered leaving because the proposed wealth tax could create a multibillion-dollar tax bill and force him to sell voting shares. Meta also announced it will issue Class C shares, partly to prevent that outcome. Zuckerberg will receive non-voting shares he can sell for liquidity without diluting his voting control, in exchange for staying in California or wherever Meta is headquartered while serving as full-time leader. California voters will decide on the measure next month; it would affect people with net assets over $1 billion as of January 1, 2026.
Source report
Meta Platforms Inc. has entered into an agreement with CEO Mark Zuckerberg that requires him to continue residing in the company's headquarters jurisdiction. This follows the chief executive's statement that he was considering leaving California if the state passes a wealth tax.
Eight-Year Residency Commitment
In a filing on Wednesday, Meta stated that Zuckerberg will "remain a California resident, or a resident of any other jurisdiction where the company is headquartered, for a period of eight years."
Wealth Tax Concerns
According to Meta, Zuckerberg considered leaving California because the proposed wealth tax could expose him to a multibillion-dollar tax bill and potentially force him to sell his voting shares to pay it.
New Class C Shares
The company announced it will issue Class C shares, a move partly designed to prevent such a scenario. Zuckerberg will receive non-voting shares that he can sell for liquidity without diluting his voting control. In exchange, he has committed to remaining in California—or wherever Meta is headquartered—for the next eight years while continuing to serve as a full-time leader.
Upcoming Vote
California voters will decide on the measure next month. The measure would affect individuals with a net worth exceeding $1 billion as of January 1, 2026.
Source
domesticNeutral / independent
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Meta strikes deal to keep Zuckerberg in California amid billionaire tax threat