Zuckerberg owns 13% of Meta but controls 61% of its votes. California’s wealth tax would bill him on the 13%
California voters will decide on Nov. 3 whether the state’s billionaires should pay a one-time 5% tax on their net worth. Some of them have already left, like Peter Thiel and Google cofounders Larry Page and Sergey Brin. They are among the seven billionaires so far who have publicly moved out of the state, taking about $540 billion, or 30% of the state’s billionaire wealth. Meanwhile, others like Jensen Huang are staying.
TL;DR
- California voters will decide on a 5% wealth tax for billionaires.
- Mark Zuckerberg holds Class B shares in Meta, giving him significant voting control despite owning a smaller economic stake.
- A potential California wealth tax could force Zuckerberg to sell shares, diminishing his voting control.
- Meta's board created a new nonvoting stock class (Class C) to allow Zuckerberg to sell shares for tax purposes without losing control.
- The new stock class also aims to support Meta's AI investments and future capital needs.
- The agreement requires Zuckerberg to stay in California for eight years, contingent on the company's headquarters and unforeseen circumstances.