Meta Platforms struck a deal with its CEO Mark Zuckerberg to keep him residing in California as the state prepares to vote on a billionaire tax in November.
Zuckerberg’s estimated net worth is about $239 billion, making him the 6th richest person in the world, according to Forbes. He has been negotiating with his own company’s board as he stares down the barrel of his home state’s possible one-time billionaire tax that could axe 5% of his net worth.
Meta detailed the agreement, called the “Founder Alignment Agreement,” in a filing to the Securities and Exchange Commission this week. The company told the federal agency that Zuckerberg had informed its special committee in September that he planned to publicly list his Palo Alto home for sale in light of California’s “Proposition 40” wealth tax ballot measure. Therefore, they came up with the solution because they believe his leadership and residence near the company’s Silicon Valley headquarters are “critically important.”
The deal creates a new class of shares called “Class C Shares” that allow Zuckerberg to sell any of his current shares of the company without losing his shareholder voting power. The agreement allows the company’s CEO and co-founder to retain much of his control over the company while remaining in California.
“The goal is to keep Mr. Zuckerberg continuing to lead the Company from California and in close proximity to Meta Superintelligence Labs. In light of that importance, the Special Committee secured Mr. Zuckerberg’s commitment to remain a resident of California, or any other jurisdiction in which the Company maintains its corporate headquarters, for eight years from the date of the Founder Alignment Agreement,” Meta wrote in the filing.
The company added that the agreement hinges on Zuckerberg satisfying leadership expectations, “unless there are material unforeseen circumstances that would render it prudent or advisable for Mr. Zuckerberg to reside elsewhere.”
The news of Zuckerberg seeking to leave the state comes as many Republican lawmakers in the state and Gov. Gavin Newsom (D-CA) spar with California progressives about what the wealth tax on the ballot would mean for the state’s richest residents. Newsom and many Republicans have argued that the tax could push industry leaders, like Zuckerberg, out of the state if they worry about further impending wealth taxes.
IF CALIFORNIA WEALTH TAX PASSES, OTHER BLUE STATES MAY ADOPT SIMILAR MEASURES
California voters will vote “yes or no” on Proposition 40 in November, as the ballot measure asks whether or not the Golden State should impose a one-time, 5% net-worth tax on its billionaire residents, provided they lived in the state as of Jan. 1, 2026.
The funding from the tax would go to supporting the state’s healthcare system, public education, and food assistance programs. The proposition is backed by the Service Employees International Union-United Healthcare Workers West.