Meta Platforms has reached an agreement with CEO Mark Zuckerberg to keep him living in California for the next eight years. The deal comes as Zuckerberg considers the financial impact of a proposed wealth tax targeting billionaires in the state.
Under the agreement, Meta will issue new non-voting shares that Zuckerberg can sell to cover a potential tax bill. In return, he has committed to remain a resident of California, or wherever Meta maintains its headquarters, for eight years.
New Shares Could Help Cover Tax Costs
The agreement follows concerns over California’s proposed Proposition 40. The measure would introduce a one-time 5% tax on the wealth of the state’s billionaires if voters approve it.
Zuckerberg reportedly warned that the proposal could create a multibillion-dollar tax liability. As a result, he considered moving his primary residence outside California to avoid the potential financial burden.
However, Meta’s new share arrangement could allow him to raise money without surrendering his voting control over the company.
According to the agreement, Zuckerberg can immediately sell 20% of the new Class C shares he receives. This portion represents around 10% of his overall economic stake in Meta.
Meta Plans Major Stock Changes in 2027
Meta plans to issue the new Class C shares in January 2027. The move will effectively create a two-for-one stock split, while preserving Zuckerberg’s voting control.
The company also intends to use the new shares to fund acquisitions and retain key employees. In addition, Meta expects to need hundreds of billions of dollars over several years to support its artificial intelligence growth strategy.
Company Seeks Stability During AI Expansion
Meta’s board considers Zuckerberg’s continued leadership important as competition in artificial intelligence intensifies. Therefore, the agreement aims to keep him close to the company’s California headquarters and its AI research teams.
However, the proposed wealth tax remains uncertain. California voters must decide whether to approve the measure next month.
The agreement highlights how potential tax changes can influence decisions by wealthy business leaders. It also shows Meta’s efforts to maintain leadership stability while pursuing its long-term expansion plans.
For the latest updates, visit and follow The Truth International website (www.thetruthinternational.com) and subscribe to the YouTube Channel.
