Meta strikes deal to help Zuckerberg foot California wealth tax

· Economy · United States

Meta has struck a deal with CEO Mark Zuckerberg to help him pay a possible California wealth tax targeting billionaires. The company will offer a new class of non-voting shares to existing investors, and Zuckerberg will have a special agreement giving him the ability to maintain control even if he sells stock. Zuckerberg had said he would leave California if the one-off 5% wealth tax, which has not yet come into force, were imposed. The arrangement means he will remain in California for eight years even if the tax passes. It deepens a debate over wealth taxes just before the midterms.

Why it matters：The arrangement shows how corporate governance is being reshaped by proposed wealth taxes, and could influence similar debates in other jurisdictions.

Key points

  • A new class of non-voting shares will be offered to investors
  • Zuckerberg will stay in California for eight years if the tax passes
  • The proposed one-off 5% wealth tax is not yet in force

Sources (original reporting)

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