Meta Reveals Zuckerberg Threatened to Leave California Over Billionaire Wealth Tax

Meta revealed in a 109-page Securities and Exchange Commission filing that CEO Mark Zuckerberg threatened to leave California if the state passes Proposition 40, a 5% wealth tax on billionaires.

The filing, posted on Wednesday, disclosed that Zuckerberg held detailed negotiations with Meta's board of directors regarding his residency if the tax is approved.

“Mr. Zuckerberg noted that he has taken only a $1 annual salary since 2013 for serving as the Company's Chief Executive Officer, and he stated that if he needed to pay any such tax by selling down his Class B common stock, the tax liability could be large enough to reduce his voting interest in the Company to approximat”

Zuckerberg's net worth is approximately $250 billion, and the proposed tax could result in a tax bill of $12.5 billion, potentially forcing him to sell large portions of his stock.

Meta stated that selling Class B common stock to pay the tax could reduce Zuckerberg's voting interest in the company to approximately 53%.

To prevent his departure, Meta granted Zuckerberg non-voting shares that can be sold to cover the tax bill without him losing control of the company.

In exchange, Zuckerberg committed to remaining in California, or wherever Meta maintains its headquarters, for the next eight years while serving as full-time CEO.

A special committee described Zuckerberg's presence at company headquarters as critically important, especially amid the intense race for artificial intelligence leadership.