Key facts
- Meta CEO Mark Zuckerberg considered leaving California due to a proposed billionaire tax.
- Californians will vote on Proposition 40, a one-time tax on billionaires' assets, next month.
- Meta is creating a new stock class for Zuckerberg to provide $20 billion in liquidity to cover potential taxes.
- The new stock class aims to keep Zuckerberg in charge of Meta from California.
- Google cofounders Sergey Brin and Eric Schmidt have funded ads against the tax proposal.
Meta CEO Mark Zuckerberg considered relocating from California due to the state's proposed billionaire tax, the company disclosed in a recent SEC filing. Californians are scheduled to vote next month on Proposition 40, a one-time tax targeting the assets of the state's wealthiest residents. Zuckerberg informed a special committee formed by Meta that he was contemplating a move. The committee determined it was crucial for Zuckerberg to remain near Meta's Silicon Valley headquarters, particularly to oversee its AI division, Meta Superintelligence Labs. This consideration is one of the reasons Meta is creating a new stock class for its CEO, which would provide $20 billion in immediate liquidity through stock sales without diminishing his control over the company, should the tax pass. The company stated the goal is to keep Zuckerberg leading Meta from California. Other tech billionaires, including Google cofounders Sergey Brin and Eric Schmidt, have contributed hundreds of millions of dollars to campaigns opposing the tax.