Meta CEO Mark Zuckerberg considered moving out of California because of its proposed billionaire tax, Meta disclosed in a new SEC filing on Wednesday.<\/p>\n
Next month, Californians will vote on Proposition 40, a one-time tax on the assets of the state’s billionaires.<\/p>\n
The filing said that Zuckerberg told a special committee formed by Meta that he was considering moving.<\/p>\n
In response, the committee concluded that it was “critically important” for Zuckerberg to keep running Meta close to its Silicon Valley headquarters \u2014 particularly to its AI division, Meta Superintelligence Labs.<\/p>\n
The filing said the committee got Zuckerberg to agree to remain in California or any other jurisdiction where Meta has its corporate headquarters for eight years, barring unforeseen circumstances.<\/p>\n
As part of its efforts to ensure he can remain in charge as it raises more cash for its AI initiatives, the company is granting the Meta CEO a new stock<\/a> class.<\/p>\n The shares would give Zuckerberg $20 billion in “immediate liquidity” to cover the tax by selling stock without losing control of Meta, if the tax passes. The new shares wouldn’t add to Zuckerberg’s net worth or increase his percentage ownership of Meta.<\/p>\n “The goal is to keep Mr. Zuckerberg continuing to lead the Company from California,” the filing says.<\/p>\n Meta declined to comment. A person familiar with the matter said that the new class of shares, which totals $150 billion, is also intended to raise capital, compensate employees, and keep Meta’s stock price on the right track.<\/p>\n Want more Business Insider in your news feed?<\/p>\n \n Add BI in Google so our reporting is easier to find when you\u2019re searching for what matters.\n <\/p>\n Meta’s filing showcases how tech billionaires are responding to the tax proposal. Some, including Google cofounder Sergey Brin <\/a>and former CEO Eric Schmidt, poured hundreds of millions of dollars into attack ads against the proposal.<\/p>\n While Zuckerberg has taken a lower-key approach, it’s clear he’s been taking the proposed tax seriously.<\/p>\n The Meta CEO, who is worth about $240 billion according to Forbes, has multiple residences in California, including in Palo Alto and Lake Tahoe.<\/p>\n