Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure
wired ·
Meta CEO Mark Zuckerberg has agreed to remain in California for eight years, despite considering a move due to Proposition 40, a ballot measure proposing a one-time five percent tax on billionaire assets. This decision follows concerns from Meta’s board that his departure could disrupt the company's critical AI ambitions and leadership stability. To incentivize his stay, Meta established a "Founder Alignment Agreement" creating new nonvoting shares that Zuckerberg can sell to cover potential tax liabilities without diluting his voting control. Under this arrangement, he may sell 20 percent of these shares immediately, with the remaining 80 percent available over eight years provided he stays in California or wherever Meta’s headquarters are located. The agreement allows for early sales only under unforeseen circumstances, ensuring his continued proximity to Meta’s Superintelligence Labs in Menlo Park. While other tech billionaires like Google co-founders have left the state, Meta prioritized keeping its leadership close to its core AI development teams. However, recent polling indicates that Proposition 40 is likely to fail after significant opposition spending, potentially rendering the complex financial arrangement unnecessary.
wired