How Meta struck a deal to keep Mark Zuckerberg in California despite looming billionaire tax
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Set us as preferred Meta’s Chief Executive Mark Zuckerberg has wielded enormous power over the social media empire he built more than two decades ago, leading the California juggernaut through major scandals, scrutiny and technological shifts.But the 42-year-old tech mogul considered leaving the state because he feared that a ballot measure to impose a one-time 5% tax on the assets of California billionaires could reduce the amount of control he has over Meta, a recent regulatory filing shows.Meta’s board struck a deal so he would stay in California.
Meta is the parent company of Facebook, Instagram and WhatsApp.The filing highlights how one of the world’s wealthiest people, whose net worth totals more than $200 billion, is bracing for the possibility that California voters pass Proposition 40, a wealth tax proposal that would primarily be used to fund healthcare.Although supporters say the fear that billionaires will flee the state are overblown, the ultrawealthy have made moves to potentially avoid paying the tax or are funding campaigns to defeat it.
California Prop 40, which would tax the assets of California billionaires to mostly fund healthcare, has divided Democratic politicians, labor unions and other groups.Zuckerberg’s influence over Meta is partly tied to how the company structures its stock.Zuckerberg holds roughly 60% of voting power over Meta even though he only owns about 13% of the company’s total shares.
Meta has a dual-class share structure, dividing the stock into Class A shares with one vote each and Class B shares with 10 votes each.Zuckerberg holds a large amount of Class B stock, which gives him majority control over company decisions.
If the wealth tax proposal passes, Zuckerberg is worried that it could reduce his voting power, according to the filing.The tech executive makes an annual ...