Meta CEO Mark Zuckerberg told company board members in September that he was considering leaving California because of Proposition 40, the billionaire tax on the Nov. 3 ballot, according to a Meta filing released Wednesday. He has now agreed to stay for eight years.
Why it matters: Prop 40 is one of the most expensive fights on the statewide ballot, and the Menlo Park company's filing is the first time a big California tech firm has spelled out how the tax could affect its leadership.
What the filing says
At a Sept. 9 dinner with board members, Zuckerberg said he planned to list his Palo Alto home for sale four days later, WIRED reported from the 109-page filing. A board special committee then worked out what Meta calls a "Founder Alignment Agreement."
Meta will create a nonvoting Class C stock, taking effect in January, given to all shareholders in proportion to their holdings. Zuckerberg can sell up to 20% of his new shares right away, including to pay a Prop 40 tax bill, without losing voting control, CNBC reported. The rest can be sold over eight years as long as he stays in California or wherever Meta is headquartered.
"There were many driving factors that led the board and special committee to approve the Class C shares, and it would be misleading to attribute it to any single reason," Meta told CNBC.
What Prop 40 would do
The measure would impose a one-time 5% tax on Californians worth more than $1 billion. CNBC cited a recent Citrin-Politico poll showing 46% in favor and 43% opposed. WIRED reported about $129 million has been spent campaigning against it.
For more on the money in the race, see our Prop 40 explainer and the full Election 2026 guide.