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Business & Finance · October 22, 2026

Mark Zuckerberg Cuts Deal With Meta Board To Keep Him From Fleeing California

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Meta Platforms has reached an agreement with CEO Mark Zuckerberg to ensure he remains a California resident regardless of the outcome of Proposition 40, a proposed wealth tax on billionaires. The deal involves the issuance of a new class of non-voting Class C shares, which allow Zuckerberg to sell a portion of his holdings to cover potential tax liabilities while maintaining his majority voting control. The agreement follows reports that Zuckerberg had considered moving his primary residence out of state if the tax, which would impose a one-time 5% levy on billionaires, was approved by voters.

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Reported by multiple outlets

  • Meta will issue a new class of non-voting Class C common stock in January 2027.
  • The deal was designed to allow Mark Zuckerberg to sell shares to pay for a potential California wealth tax without losing voting control.
  • Zuckerberg told the Meta board he would consider moving out of California if Proposition 40 passes.
  • Proposition 40 is a ballot initiative proposing a one-time 5% tax on the wealth of billionaires.
  • Zuckerberg currently holds approximately 60.6% of voting control at Meta.

Reported by only some outlets

  • The board negotiations included DoorDash CEO Tony Xu, Ambassador Robert Kimmitt, and Charles Songhurst.
  • The committee members reportedly considered resigning at one point during contentious negotiations.
  • Zuckerberg is ranked as the sixth richest man in the world with a $224 billion net worth.
  • The new stock issuance is also intended to help fund AI acquisitions and keep top talent.

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CadNews does not determine absolute truth or endorse political viewpoints. It compares publicly available reporting, identifies shared facts, highlights framing differences, and flags uncertainty.