The move follows months of tense negotiations between the Meta CEO and his board. According to reports, Zuckerberg threatened to leave his Palo Alto residence if the company did not facilitate a way for him to cover the potential levy without sacrificing his authority. Starting in January, Meta will issue a new class of stock specifically to allow for this liquidity.
In section Newsroom
Mark Zuckerberg Prepares for Potential California Billionaire Tax
Mark Zuckerberg is restructuring his Meta stock holdings to prepare for a potential wealth tax, signaling the impact of California’s upcoming Proposition 40. Federal filings show the CEO negotiated a deal to sell shares for a tax bill while maintaining his 60.6% voting control over the Silicon Valley company.
If passed, Proposition 40 would impose a 5% tax on the wealth of California’s billionaires starting in 2026. Economists estimate the measure could generate $100 billion to support Medicaid and education. While figures like Sergey Brin have funded opposition to the initiative, Zuckerberg has remained publicly uninvolved in the campaign against it. Economist Gabriel Zucman, a proponent of the measure, noted that Zuckerberg could face a tax bill of roughly $10 billion, marking a significant shift in how the billionaire’s vast fortune is treated under state law.
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