Odaily Planet Daily reports that Meta has reached an agreement with CEO Zuckerberg to issue him sellable, non-voting shares to cover potential billions of dollars in wealth tax liabilities resulting from the passage of California’s wealth tax proposal. In exchange, Zuckerberg has committed to residing in California or at Meta’s headquarters for eight years. Previously, Zuckerberg indicated that if Proposition 40—a proposed one-time 5% wealth tax on California billionaires—passes in next month’s vote, he would consider relocating out of California. With a net worth of approximately $240 billion, Zuckerberg can immediately sell 20% of the Class C shares he receives, equivalent to 10% of his economic interest in the company, while retaining voting control. Meta will issue new non-voting Class C common shares in January 2027, effectively implementing a 2-for-1 split.
Meta grants Mark Zuckerberg non-voting shares to cover California wealth tax
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Summary
Meta has reportedly reached an agreement with Mark Zuckerberg, offering non-voting shares to offset potential tax liabilities under California’s Proposition 40. The deal requires Zuckerberg to remain in California or at Meta’s headquarters for eight years. He may sell 20% of the new Class C shares, equivalent to 10% of his economic interest, while retaining full voting power. On-chain reports suggest Meta plans a stock split in early 2027. Previously, Zuckerberg had considered relocating out of the state if the tax had been enacted. This arrangement prevents a major disruption for the company.
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