Meta is offering Mark Zuckerberg shares to persuade him to remain in California, despite the possible introduction of a wealth tax on billionaires

Meta has reached an agreement with its chief executive, Mark Zuckerberg, to persuade him to keep his residence in California or in the state where the company will have its headquarters over the next eight years. The decision comes after the billionaire warned that he might leave California if voters approve Proposition 40, which provides for a one-time tax of 5% on billionaires’ wealth.

Under the agreement, Zuckerberg will receive non-voting Class C shares, which he will be able to sell to cover a potential tax liability estimated at billions of dollars. He will be able to immediately sell 20% of the shares received, equivalent to 10% of his total economic interest in Meta, without proportionally reducing his control over the company.

In January 2027, Meta will issue a new class of ordinary Class C shares. The operation will have the effect of a “two-for-one” split and is intended to facilitate the financing of acquisitions and the retention of key employees.

The company estimates that it may need to raise hundreds of billions of dollars starting in the fall of 2026, particularly for investments in artificial intelligence. Meta’s management considers it essential for Zuckerberg to remain at the helm of the group, amid intensifying competition in the technology industry.