What changed
Meta CEO Mark Zuckerberg has agreed to stay in California for eight years, potentially exposing himself to one-time taxes if California voters approve Proposition 40, a ballot measure that could impose a 5 percent tax on assets held by billionaires as of January 2026. The decision was reached after a board dinner on September 9, where Zuckerberg discussed his potential move to Florida. The agreement links his ability to sell special company shares to his continued residence in California.
What this means in practice
Zuckerberg’s potential departure from California was a concern for the company’s special committee, which included board members like Robert Kimmitt and Tony Xu. The committee and Zuckerberg reached an agreement that creates a new class of nonvoting shares. Existing shareholders will automatically receive these shares in proportion to their holdings. Zuckerberg can sell 20 percent of these shares to pay any potential taxes, while the remaining 80 percent can be sold in chunks over eight years if he stays in California. Selling early would require offloading some voting shares unless there are unforeseen circumstances.
Limitations and availability
The agreement specifies that Zuckerberg only needs to remain where Meta’s headquarters is located, so he could potentially move with the company to another state. However, the filing notes that the goal is to keep Zuckerberg leading the company from California, near Meta Superintelligence Labs. Recent polling suggests that Proposition 40 may fail despite significant campaign spending against it.
