Meta strikes deal to stop Mark Zuckerberg leaving California over billionaire tax

Meta strikes deal to keep Mark Zuckerberg in California

The full report

Meta has agreed a deal with Mark Zuckerberg to prevent him from leaving California due to a proposed tax on billionaires. The agreement allows Zuckerberg to sell shares in Meta without losing control of the company if he needs to pay a large tax bill.

The proposed tax, which would impose a one-time 5% tax on state residents with a net worth of more than $1bn, is yet to pass. Californian residents will vote on 3 November. Zuckerberg secured the deal after "robust" and "contentious" negotiations with a special committee at Meta.

California is home to most of the US's technology giants, with around 225 billionaires residing in the state, according to the Americans for Tax Fairness campaign group. Zuckerberg has a $226bn fortune, according to Forbes' billionaires tracker, and had told Meta's board that he was evaluating relocating his primary residence outside California.

A special committee within Meta decided it was "critically important" to keep Zuckerberg in a leadership role and in California to manage the firm from its headquarters "during this era of unprecedented challenge and competition in our industry". Meta said the share deal was appropriate to ensure Zuckerberg "remains working closely" with the company's AI at its headquarters.

Meta's special committee wants Zuckerberg to continue his "talent and leadership" which have been crucial to the company's growth, strategy, and stability since its inception. The deal was made after Meta was fined $25bn for 'lies' over user data privacy.