From California Post · · 1m 20s
Zuckerberg Threatens to Leave California Over Billionaire Tax
Meta CEO Mark Zuckerberg threatens to dump $110M California home if state passes 5% billionaire wealth tax.
In brief
Meta CEO Mark Zuckerberg threatens to dump $110M California home if state passes 5% billionaire wealth tax. Zuckerberg plans to move out of California by mid-October if Prop. 40 wealth tax takes effect, risking loss of voting control in Meta. Originally reported by California Post.
Zuckerberg's Threat to Move
Meta CEO Mark Zuckerberg threatened to dump his $110 million Palo Alto home if California passes Prop. 40, a 5% wealth tax on billionaires.
“Mr. Zuckerberg noted that he has taken only a $1 annual salary since 2013 for serving as the Company’s Chief Executive Officer”
Tax Impact on Zuckerberg
Zuckerberg's $250 billion net worth could face a $12.5 billion tax bill under Prop. 40, risking loss of voting control in Meta.
“the tax liability could be large enough to reduce his voting interest in the Company to approximately 53%”
Timeline of Threats
Zuckerberg demanded revised compensation by August 3 to boost liquidity if Prop. 40 passes, aiming to move by mid-October.
“he would need to begin taking steps by mid-September in order to establish residency outside California by mid-October”
Prop. 40 Details
Prop. 40 is a 5% wealth tax on billionaires, with 46% of voters supporting it in recent polls but falling short of majority.
“46% of voters backing the tax in one poll released this week, and 43% of respondents against it”
Meta's Response
Meta plans to spin out new Class C shares to ensure Zuckerberg remains in leadership despite potential tax impacts.
“the company detailed a recapitalization and dividend plan intended to ensure Zuckerberg remains in leadership”
Zuckerberg's Residency Plan
Zuckerberg intends to remain in California or any jurisdiction where Meta is headquartered unless material unforeseen circumstances arise.
“Zuckerberg has agreed to remain a resident of California or any other jurisdiction in which the Company maintains its corporate headquarters”
Next Steps
Zuckerberg plans to move out of California by mid-October if Prop. 40 passes, potentially triggering a leadership shift at Meta.
“he would need to begin taking steps by mid-September in order to establish residency outside California by mid-October”
The one thing
Zuckerberg plans to move out of California by mid-October if Prop. 40 wealth tax takes effect, risking loss of voting control in Meta.
