Meta Platforms has taken proactive measures to ensure that CEO Mark Zuckerberg remains in California, where he currently resides, by implementing a new stock plan in response to the potential passage of Proposition 40.
This proposed legislation would impose a 5% tax on individuals with a net worth exceeding $1 billion, a category that includes Zuckerberg, whose net worth is approximately $225 billion. The company disclosed this plan in a filing coinciding with its third-quarter earnings report, marking a significant move among California's major tech firms.
Zuckerberg has committed to staying in California for eight years unless unforeseen circumstances arise, and the new stock plan includes a class of non-voting shares that will allow him to sell or transfer up to 20% of the shares granted to him to cover any potential tax liabilities without losing his majority voting control.
This decision underscores Meta's view of Zuckerberg as essential to its future, particularly in its ambitions within artificial intelligence. The tech industry largely opposes Proposition 40, with notable figures like former Google CEO Eric Schmidt and Stripe CEO Patrick Collison actively campaigning against it.
Recent polls indicate that support for the measure is close, with 46% in favor and 43% opposed, suggesting uncertainty about its future. Overall, this situation reflects broader tensions regarding taxation and the tech industry's response to regulatory changes in California