Zuckerberg Agrees to Remain in California as Billionaire Tax Vote Nears
publishers 29articles 37first reported 14 Oct, 09:00 UTCdeveloping since 14 Oct · 19 editions
Meta CEO Mark Zuckerberg has agreed to remain in California under a stock arrangement reached as voters prepare to decide Proposition 40, a proposed one-time wealth tax on billionaires.
The Nov. 3 ballot measure would impose a 5% tax on the worldwide assets of California residents worth more than $1 billion. According to a Meta regulatory filing, Zuckerberg told a special board committee in September that he was considering leaving the state because of the proposal and planned to list his Palo Alto home.
The committee viewed a potential relocation as a risk to Meta, citing difficulties when Zuckerberg could not work in person with management during the COVID-19 pandemic. Meta subsequently negotiated a “Founder Alignment Agreement” tying Zuckerberg’s ability to sell newly created nonvoting shares to his continued residence where the company maintains its headquarters.
Under the arrangement, Zuckerberg may sell 20% of his allocation of the new shares to cover possible taxes. The other 80% may be sold in portions over eight years while he remains in California, with limited exceptions. Meta said the structure would provide liquidity without reducing his voting interest. Existing shareholders would receive the new nonvoting shares in proportion to their holdings.
Polling indicates a close contest. A September UC Berkeley Institute of Governmental Studies survey found 45% support, 42% opposition and 13% undecided, while a later Mason-Dixon poll gave supporters a 10-point lead. Most revenue from the proposal would fund state-supported health-care programs.
HOW THIS STORY WAS MADE
Written from 8 articles, 3 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one (7 if wire copies count as one too); this version written 212 h after the record first saw the story; the editor kept it as written.
- Publishers
- 29
- Source articles
- 37
- Given to the writer
- 8, 3 with the article's own text
- Independent newsrooms
- 8 (7 if wire copies count as one)
- This version written
- 212 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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