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Tech · October 22, 2026

Mark Zuckerberg’s creative plan to pay California’s proposed billionaire tax without losing control of Meta

4 sources →

Meta’s board has approved a new stock structure and agreement to ensure CEO Mark Zuckerberg remains a California resident for the next eight years. The move comes in response to Zuckerberg’s stated intention to leave the state due to Proposition 40, a proposed ballot measure that would impose a one-time 5% wealth tax on billionaires. To prevent his departure, which the board feared would disrupt Meta’s AI ambitions, the company created a new class of non-voting Class C shares. This structure allows Zuckerberg to sell stock to cover potential multibillion-dollar tax liabilities while maintaining his 60% voting control of the company.

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Reported by multiple outlets

  • Meta's board approved a new class of non-voting stock called Class C common stock.
  • The agreement requires Mark Zuckerberg to remain a resident of California for eight years.
  • Zuckerberg previously informed the board he was considering moving out of California to avoid Proposition 40.
  • Proposition 40 is a proposed one-time 5% tax on the assets of billionaires living in California.
  • Zuckerberg currently controls approximately 60% of Meta's voting power.
  • The new stock structure allows Zuckerberg to liquidate assets for tax payments without losing voting control.

Reported by only some outlets

  • Zuckerberg told the board on September 9 that he planned to list his Palo Alto home for sale.
  • Zuckerberg purchased a home in Florida in February 2024.
  • The special committee of the board included Robert Kimmitt, Charlie Songhurst, and Tony Xu.
  • Meta's filing is 109 pages long.
  • Proposition 40 was drafted by Berkeley tax law professors and sponsored by a healthcare union.
  • Zuckerberg's current annual salary is $1.

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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.