Meta board approves share plan to help Zuckerberg cover California wealth tax

Meta Platforms announced a new class of non-voting shares on Wednesday, clearing the way for chief executive Zuckerberg to liquidate assets if needed to pay potential liabilities from California's proposed billionaire wealth tax. If approved by voters in November, the measure would impose a one-time 5 per cent tax on the wealth of Californians with net worth exceeding USD 1 billion. Zuckerberg, the world's sixth-richest person with an estimated net worth of USD 220 billion, would face a tax bill exceeding USD 11 billion under the proposal, according to Forbes rankings.

The arrangement represents a compromise between Zuckerberg and Meta's board, following reports that the tech entrepreneur had considered selling his Palo Alto residence to prepare for the potential tax liability. The new share structure allows Zuckerberg to sell a portion of his holdings for "any reason" while retaining voting control and his majority stake in the company he founded. This approach prevents the forced sale of Meta shares, which could have triggered substantial market implications.

The move reflects growing concerns among wealthy technology executives about wealth tax proposals gaining traction in various U.S. jurisdictions. California's measure represents one of the most ambitious attempts to tax billionaire fortunes at the state level, prompting corporate leaders to explore financial mechanisms to manage potential exposure while preserving operational control of their enterprises.