Mark Zuckerberg agrees to stay in California after board deal on new shares
Meta’s board met on September 9, and Mark Zuckerberg told members he was weighing a move out of California because of Proposition 40, a ballot measure that would levy a one‑time 5 % tax on billionaire stock and other assets held in the state as of January 2026. Four days later he listed his Palo Alto home for sale, according to a 109‑page filing.
Key points
- Meta will issue nonvoting shares; Zuckerberg can sell 20% now and 80% over eight years if he stays in California.
- Proposition 40 proposes a one‑time 5% tax on billionaire assets in California as of Jan 2026.
- Zuckerberg’s $1 annual salary and borrowing against shares helped him avoid taxes; he listed his Palo Alto home for sale after the board dinner.
A special committee that included attorney Robert Kimmitt, venture capitalist Charlie Songhurst and DoorDash CEO Tony Xu negotiated a “Founder Alignment Agreement.” The deal creates a new class of non‑voting shares that all shareholders will receive automatically. Zuckerberg may sell 20 % of those shares now to cover any tax liability, while the remaining 80 % can be sold in chunks over the next eight years provided he remains where Meta’s headquarters are located. The proceeds are intended to fund Meta’s costly AI data‑center expansion without diluting his voting control. The filing notes that the agreement would still allow a move if Meta’s headquarters relocate.
Proposition 40 could face lawsuits even if approved, and recent California polling shows the measure may not gather enough votes after $129 million was spent campaigning against it. The board’s effort aims to keep Meta’s AI work, including the Muse models from its Superintelligence Labs, in Silicon Valley.
The story so far
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The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
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