Zuckerberg Considered Leaving Ca Over Wealth Tax, Meta Says

Meta warned Wednesday that its CEO Mark Zuckerberg could leave California if the state enacts a billionaire tax.

The company said Zuckerberg had informed its special committee of the possibility, and it decided to give him a financial incentive to continue leading the company from California for the next eight years, despite the risk of a “significant, multi-billion dollar tax payment.”

Under Meta’s plan, set out in a regulatory filing, the company would create a new class of share allowing the CEO to sell up to half his economic stake in Meta without giving up voting control.

“Zuckerberg informed the Special Committee that he was evaluating relocating his primary residence outside California and that steps toward any such relocation, including any listing of his residential real estate in California on the market, would be public and inevitably noted and commented upon by Company employees and, accordingly, raise questions for management of the Company going forward,” the filing to the Securities and Exchange Commission reads.

The wealth tax is on the November ballot for California voters and proposes a one-time 5% levy on billionaires' assets.

Several tech leaders, like Google co-founder Sergey Brin, investor Ron Conway, DoorDash CEO Tony Xu and crypto billionaire Chris Larsen, have spent millions of dollars to fend off the measure. Nvidia CEO Jensen Huang is one of the rare industry executives who said he wouldn’t mind the tax. Xu also sits on Meta’s special committee.

But Zuckerberg’s potential departure and its impact on the Silicon Valley-headquartered Meta could pose a significant threat to California’s economy, while putting additional pressure on Democratic Gov. Gavin Newsom. The California governor has opposed the tax, arguing that a state-level policy would drive wealthy residents away, harming the broader economy and state budget.

Meta’s special committee concluded that Zuckerberg’s continued leadership as CEO would be “critical” to the company’s success as it invests heavily in AI and navigates an inflection point in industry competition. Zuckerberg also has enormous control over Meta because of his voting shares.

Meta agreed to gradually lift restrictions on Zuckerberg’s ability to sell certain shares over eight years, provided he stays a company leader and based near its headquarters.

“The goal is to keep Mr. Zuckerberg continuing to lead the Company from California and in close proximity to Meta Superintelligence Labs,” the filing said.