How Mark Zuckerberg Pushed Meta to Shield Him From California’s Proposed Wealth Tax
The billionaire told Meta’s board that he planned to list his Silicon Valley home for sale. The company remade its stock structure to help him pay the tax if voters pass it.
TL;DR
- Mark Zuckerberg needed Meta's board to act to protect him from a looming billionaire tax in California.
- He gave the board an ultimatum: strike a deal or he would publicly list his Palo Alto home for sale.
- Meta responded by creating a new class of stock to be issued in January, allowing Zuckerberg to sell shares to pay the potential tax without reducing his voting power.
- The move also helps Meta fund its artificial intelligence investments.
- The proposed tax, Proposition 40, would impose a one-time 5 percent tax on billionaires residing in California as of January 1, 2026.
- Zuckerberg could face a tax liability of nearly $12.5 billion, which would necessitate selling existing shares and could reduce his voting power from 60.6 percent to 53 percent.