Meta strikes deal to stop Mark Zuckerberg leaving California over billionaire tax
The Meta boss had said he would exit the state over a wealth tax that has not yet come into force.
Meta has struck an agreement with Mark Zuckerberg designed to keep the Facebook co-founder in California, after he warned he was weighing a move out of the state over a proposed tax on billionaires.
Zuckerberg told Meta's board he was considering relocating his primary residence outside California. He cautioned directors that listing his home on the market would inevitably become public and be "noted and commented upon by company employees", adding that it "would raise questions for management of the company going forward".
The dispute centers on a proposed one-time 5% levy on California's billionaires, a measure that has not yet taken effect. The Meta chief secured the arrangement with a special committee of the company's board after what were described as "robust" and, at several points, "contentious" negotiations.
California is home to most of America's technology giants, and roughly 225 billionaires live in the state, according to the Americans for Tax Fairness campaign group. Zuckerberg himself holds a fortune of about $226bn, according to Forbes' billionaires tracker.
He had assured the board that he intended to remain with Meta for "the foreseeable future". The special committee concluded it was "critically important" to keep him in a leadership role and in California, so he can run the company from its headquarters "during this era of unprecedented challenge and competition in our industry".
Meta said the share arrangement was appropriate to ensure Zuckerberg "remains working closely" with the company, and praised him as a leader whose talent and leadership have been crucial to its growth, strategy and stability.
Source: BBC News — Technology — TrendWire reports stories in its own words; facts should be confirmed against the original source.