Meta Reaches Deal to Keep Mark Zuckerberg in California Amid Proposed Billionaire Tax

Meta has reached a deal with Mark Zuckerberg to prevent him from leaving California after the Facebook co-founder threatened to move out of state over proposed taxes on billionaires.

The agreement would allow Zuckerberg, one of the world’s richest people, to sell his stake in Meta without losing control of the California-based company if he has to pay a substantial tax bill.

California billionaire tax proposal

The proposed bill would impose a one-off 5% tax on state residents with a net worth of more than $1bn (£750m). It has not yet been passed, and Californians will vote on it on November 3rd.

Despite the uncertainty, Zuckerberg reached an agreement with Meta’s special committee following negotiations described as “robust” and, in some respects, controversial.

California is home to most of the United States’ technology giants and about 225 billionaires, according to Americans for Tax Fairness.

Zuckerberg plans to remain at Meta

Zuckerberg, who is worth $226 billion according to the Forbes Billionaire Tracker, told Meta’s board of directors that he intended to remain with the company “for the foreseeable future.”

However, he said he was considering moving his primary residence outside California. He added that listing his home on the real estate market “would be public and would inevitably attract attention and comment from company employees.”

Zuckerberg told the board that the move “will raise questions about the company’s management going forward.”

A special committee within Meta decided it was “critically important” for Zuckerberg to remain in his leadership role and manage the company from its California headquarters “during a time of unprecedented challenge and competition in our industry.”

Meta focuses on artificial intelligence

Technology companies in the United States and around the world are spending billions of dollars developing artificial intelligence and the infrastructure needed to support it.

Meta said the stock deal was appropriate to ensure Zuckerberg “continues to work closely” with the company’s AI efforts at its headquarters.

His “talent and leadership have been critical to the growth, strategy and stability of our company since our inception,” Meta said, adding that the special committee wants to see that continue.