# Meta Agrees to Keep Mark Zuckerberg in California With a Non-Voting Share Deal That Could Cover a Billionaire Wealth Tax Bill

Fox Business, citing Reuters, says Zuckerberg gets a new class of non-voting stock he can sell to pay a possible tax if voters pass the ballot measure, in exchange for an eight-year residency pledge.

- Section: [Economy](https://rightnewsrightnow.com/economy/)
- Published: 2026-10-22
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/meta-zuckerberg-stay-california-non-voting-shares-billionaire-wealth-tax/

Meta and its chief executive have struck a deal that keeps Mark Zuckerberg in California while a billionaire wealth tax sits on the November ballot. Fox Business reports the terms, citing Reuters.

The deal. Zuckerberg had told the company he was weighing a move out of the state because of the ballot measure. Under the new agreement he will receive non-voting shares he could sell to help cover a tax bill, and in return he commits to stay a resident of California, or of the state where Meta is headquartered, for eight years. Fox Business calls the measure Proposition 40. Our earlier coverage used a different number for the same wealth tax fight, so check your ballot for the final label.

The tax. The measure would impose a one-time tax equal to 5% of net worth on billionaires who were California residents on Jan. 1, 2026. If voters approve it in November, the tax would be due in 2027, with payments spread over five years at added cost. Real estate, pensions and retirement accounts would generally be excluded. Fox, citing Forbes, puts Zuckerberg's net worth near $250 billion and ranks him sixth richest in the world.

How the shares work. Meta said Wednesday it plans to issue a new class of non-voting Class C stock in January 2027. Zuckerberg can sell 20% of the Class C shares he receives right away, which Fox says equals 10% of his overall economic stake, so he could pay a tax without giving up voting control. Chief financial officer Susan Li said on the third-quarter earnings call that the shares are meant for capital raising, employee pay and acquisitions. Meta says a special committee of independent directors unanimously backed the plan, and a company filing cites the value of Zuckerberg staying close to management and to Meta's Superintelligence Labs.

The argument. The measure has the California Democratic Party's endorsement, though Gov. Gavin Newsom and other Democrats oppose it. Economist Art Laffer warned it could set off an exodus of wealthy residents. Entrepreneur Eric Schiffer predicted "a giant sucking sound" of founders leaving. California's Legislative Analyst's Office says "some billionaires" may leave, that lost income tax could be under $1 billion a year, and that the wealth tax could raise tens of billions over several years.

Note for readers: the deal terms come from Reuters through Fox Business. The Laffer and Schiffer comments are their opinions.

## Source

Original reporting: [Fox Business (citing Reuters)](https://www.foxbusiness.com/business-leaders/meta-agrees-let-mark-zuckerberg-remain-california-amid-proposed-billionaire-wealth-tax)