From WIRED · Paresh Dave · · 1m 30s
Zuckerberg agrees to stay in California eight years
Meta's CEO commits to Silicon Valley residency to keep his voting shares, despite a proposed billionaire tax that nearly drove him to Florida.
In brief
Meta's CEO commits to Silicon Valley residency to keep his voting shares, despite a proposed billionaire tax that nearly drove him to Florida. Mark Zuckerberg agreed to remain in California for eight years to retain access to new Meta shares, after considering leaving over Proposition 40, a proposed five percent tax…
Zuckerberg considered leaving California
Meta CEO Mark Zuckerberg told board members on September nine he was considering leaving California because of Proposition forty, a ballot measure proposing a one-time five percent tax on billionaire assets.
The board worried about his departure
A special committee including attorney Robert Kimmitt, venture capitalist Charlie Songhurst, and DoorDash CEO Tony Xu feared losing Zuckerberg's physical presence, recalling difficulties during the COVID-nineteen pandemic.
Meta created a new share class deal
Meta announced a Founder Alignment Agreement letting Zuckerberg sell twenty percent of new nonvoting shares immediately to pay taxes, with the remaining eighty percent available over eight years if he stays in California.
The loophole: Meta could move too
The agreement requires Zuckerberg to stay where Meta's headquarters is located, meaning both he and the company could move together to another state like Texas or Nevada.
Proposition forty likely to fail anyway
Recent polling suggests Proposition forty will fail despite the stakes, with one hundred twenty nine million dollars spent campaigning against it, potentially making the entire agreement unnecessary.
At a glance
Mark Zuckerberg agreed to remain in California for eight years to retain access to new Meta shares, after considering leaving over Proposition 40, a proposed five percent tax on billionaire assets.
