Meta has struck a new deal with its chief executive, Mark Zuckerberg, to keep him in California over a planned state tax on billionaires. The deal will give Zuckerberg, who is said to be worth more than $200bn (£149bn), more Meta shares as compensation for the portion of his money he may lose if voters approve the tax in November.
The plan would levy a one-time 5% tax on residents with net worth over $1 billion. It would likely see the Facebook co-founder pay almost $10 billion in increased state taxes.
The settlement with a special committee of Meta followed “robust, and at times contentious negotiations,” according to a financial filing Wednesday. Most of the US’s technology giants are based in California, which is home to some 225 billionaires, according to campaign group Americans for Tax Fairness.
In recent years, the wealth of such people, including Zuckerberg, has grown. At the same time, his estimated effective tax rate in California was below 1 percent a year. Last month Zuckerberg informed Meta’s board he was considering transferring his primary residence out of California, and potentially selling his place in the state. His two primary houses in California are in Palo Alto and Lake Tahoe.
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