Facing the prospect that Facebook co-founder Mark Zuckerberg might leave California over a proposed tax on billionaires, Meta reached an agreement to try to keep him in the state.
Under the plan, Zuckerberg could sell part of his Meta stake to cover a large tax bill without giving up control of the company, according to the BBC.
Here's what to know
Before Californians vote on Prop 40, a one-time 5% tax on anyone with at least $1 billion in assets, Meta adjusted its approach to Zuckerberg's shares, arguing that it is "critically important" to keep him in the Golden State.
The BBC reported that a special committee approved the deal after "robust" and "at several points, contentious" talks. It said the plan would "essentially make up any wealth he may lose through the tax proposal" by allowing him to obtain more stock more frequently. A financial filing also revealed that he would be able to sell the stock each quarter as well.
More background
Americans for Tax Fairness data shows that around 225 billionaires reside in California, which is also home to most major U.S. technology companies, the BBC noted, so the tax would affect some of the most powerful people in business.
The proposal would impact only a tiny share of taxpayers, but it has sparked a debate about what wealthy residents owe the communities where their companies are headquartered and build influence — and whether the proposed tax will backfire by driving business away.
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For his part, Zuckerberg had told Meta's board that he could sell his California properties and move out of the state if Prop 40 passed. He argued his departure "would be public and inevitably noted and commented upon by company employees" and that it "would raise questions for management of the company going forward," per the BBC.
Californians will vote on Prop 40 on Nov. 3.
Where can I learn more?
The discussion about Zuckerberg's taxes and residency is part of a broader debate over billionaire wealth and influence.
• In Florida, Zuckerberg bought an ultra-luxury Florida mansion as critics accused him of chasing tax advantages.
• In Miami's Indian Creek, Zuckerberg's latest billionaire-bunker purchase showed how wealth is reshaping local housing.
• In Silicon Valley, officials used a new law targeting billionaire compounds to confront widening inequality.
• Across the U.S., investors used bonus depreciation tax breaks to slash bills on big purchases.
• In Palo Alto, Zuckerberg's neighbors pushed back as a sprawling backyard empire with a private school took shape.
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