From Business Insider · Charles Rollet · · 1m 20s
Zuckerberg weighed leaving California over billionaire tax
Meta's CEO considered relocating to avoid a proposed state tax on billionaire assets, prompting the company to secure his commitment with a new stock class worth twenty billion dollars.
In brief
Meta's CEO considered relocating to avoid a proposed state tax on billionaire assets, prompting the company to secure his commitment with a new stock class worth twenty billion dollars. Mark Zuckerberg considered leaving California over a proposed billionaire tax, but Meta secured his eight-year commitment by granting…
Zuckerberg weighed leaving California
Meta CEO Mark Zuckerberg considered moving out of California because of its proposed billionaire tax, the company disclosed in an SEC filing on Wednesday.
What California voters will decide
Next month, Californians will vote on Proposition forty, a one-time tax on the assets of the state's billionaires.
Meta's response to the threat
A special committee concluded it was critically important for Zuckerberg to keep running Meta close to its Silicon Valley headquarters, particularly its AI division, Meta Superintelligence Labs.
The deal to keep him in California
Meta got Zuckerberg to agree to remain in California or any other jurisdiction where Meta has its corporate headquarters for eight years, barring unforeseen circumstances.
Twenty billion in immediate liquidity
The company is granting Zuckerberg a new stock class worth twenty billion dollars in immediate liquidity to cover the tax by selling stock without losing control of Meta if the tax passes.
“The goal is to keep Mr. Zuckerberg continuing to lead the Company from California.”
The takeaway
Mark Zuckerberg considered leaving California over a proposed billionaire tax, but Meta secured his eight-year commitment by granting him stock worth twenty billion dollars in immediate liquidity.
