Meta Stock Split Deal Will Keep Billionaire Mark Zuckerberg In California

25.10.2026

Forbes Talks

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4:01

Meta struck an agreement with its billionaire CEO Mark Zuckerberg to keep him in California for the next eight years, according to an SEC filing, after he considered leaving the state over its proposed billionaire wealth tax that could have forced him to sell his shares in the company and weaken his voting control. In an SEC filing, Meta said Zuckerberg told a special committee of the company’s board that he was considering “relocating his primary residence outside California” because he would be liable for a “significant, multi-billion dollar tax” if voters in the state approve the wealth tax ballot measure in November. The billionaire was concerned that paying the proposed tax could force him to sell some of his supervoting Class B shares, potentially reducing his voting control in the company from about 60.6% to 53%, according to the filing. In a separate 8-K filing, Meta disclosed Zuckerberg had signed a “Founder Alignment Agreement” to remain a resident of California—or any jurisdiction where Meta maintains its corporate headquarters—while continuing to serve in a full-time leadership role. Under the agreement, Meta will create a new class of Class C non-voting shares, distributing one new share for every existing Class A or Class B share in January 2027, allowing the company to raise money without diluting the voting power of existing shareholders. Zuckerberg will initially be allowed to sell 20% of his newly allocated Class C shares, an additional 2.5% of his Class C shares will become eligible for unrestricted sale each quarter as long as he serves in his full-time leadership role. In the preliminary filing, Meta’s board committee argued that it was “critically important” to keep Zuckerberg in a leadership position near its California headquarters amid intensifying competition in AI. Read the full story on Forbes: https://www.forbes.com/sites/siladityaray/2026/10/22/meta-stock-split-deal-will-keep-mark-zuckerberg-in-california-amid-billionaire-tax-threat/ Learn more about your ad choices. Visit megaphone.fm/adchoices