Meta disclosed a new stock incentive plan designed to keep founder and CEO Mark Zuckerberg in California for at least eight years, coinciding with the company's third-quarter earnings report and less than two weeks before the midterm elections [1]. The move comes as California voters prepare to decide on Proposition 40, which would impose a 5% tax on residents worth over $1 billion [1]. With Zuckerberg's net worth currently around $225 billion, the filing noted that "if the California wealth tax is enacted and Mr. Zuckerberg becomes liable for a tax payment, Mr. Zuckerberg would effectively be paying to serve as the Company's chief executive officer while residing in California," given his $1 annual salary [1].
The new stock plan creates a non-voting Class C common stock to take effect in January, through which Zuckerberg will receive a dividend of shares [1]. Critically, he will be able to "immediately sell or transfer up to 20%" of granted shares "for any reason, including so that he may pay his potential tax liability under California Proposition 40, if enacted into law, without affecting his majority voting control" [1]. This structure allows Zuckerberg to maintain voting control while having liquidity to cover potential tax obligations. The filing specifies that Zuckerberg's commitment to remain in California extends for eight years "unless there are material unforeseen circumstances that would render it prudent or advisable for Mr. Zuckerberg to reside elsewhere" [1].
Zuckerberg and Nvidia CEO Jensen Huang are notably the only two centibillionaire tech CEOs still residing in California [1]. This contrasts sharply with other tech titans: Elon Musk and Michael Dell live in Texas, Amazon founder Jeff Bezos' primary residence is elsewhere, and Google co-founders Larry Page and Sergey Brin recently moved to Florida ahead of the election, as has Oracle founder Larry Ellison [1]. The tech industry has been largely unified in opposing Proposition 40, with notable figures including former Google CEO Eric Schmidt and Stripe CEO Patrick Collison spending resources to oppose the ballot measure [1].
CONCLUSION
Meta's proactive stock plan signals serious concern about potential executive flight if California's wealth tax passes, while the broader tech industry's opposition to Proposition 40 reflects deep anxiety about tax-driven relocation. The move represents a first among California's megacap tech companies and underscores the competitive pressure states face in retaining billionaire entrepreneurs and their companies.