Zuckerberg Signs Eight-Year California Residence Deal With Meta to Avoid Wealth Tax

Meta Platforms and CEO Mark Zuckerberg have agreed to an eight-year arrangement requiring him to continue residing in the jurisdiction of the company's headquarters. Previously, Zuckerberg stated he would consider leaving California if a wealth tax were passed. In a filing released Wednesday, Meta confirmed that Zuckerberg will 'continue to reside in California or any other jurisdiction where the company has its headquarters for the next eight years.' The company noted that Zuckerberg was considering departure due to the proposed wealth tax, which could expose him to billions in taxes and potentially force the sale of voting shares. To prevent this, the deal involves issuing Class C stock to Zuckerberg; under the agreement, he can immediately sell 20% of these shares, equivalent to 10% of his overall economic stake, providing liquidity to offset potential tax burdens from California's Proposition 40, which will be voted on by voters next month.