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Thu, 22 Oct 2026

Thu, 22 Oct 2026 Zuckerberg wins Meta deal to help him foot bill for possible California billionaire tax

The Meta boss had said he would exit the state over a wealth tax that has not yet come into force.
Meta's CEO Mark Zuckerberg has secured a deal that will prevent him from leaving California due to a proposed state tax on billionaires. The deal, called the "Founder Alignment Agreement", gives Zuckerberg even more shares in Meta to make up for any potential losses he may incur if the tax is passed. Under the tax proposal, residents with a net worth of over $1 billion would be subject to a one-time 5% tax, which could see Zuckerberg pay around $10 billion in additional state taxes. The deal was negotiated after Zuckerberg expressed concerns that his move out of California would be "public and inevitably noted" by employees, and would also raise questions about the company's management going forward. As part of the deal, Meta created a new type of stock and gave one new share to each existing shareholder, including Zuckerberg. This will allow him to receive more stock, sell it more frequently, and benefit from the company's value without losing control over it. The agreement is effective for eight years as long as Zuckerberg remains a California resident. Meta stated that this deal is "critically important" to keep Zuckerberg leading the company from California, given the company's focus on artificial intelligence and related technologies.