Meta ties Zuckerberg share deal to eight-year residence pledge

Meta Platforms has agreed to provide Mark Zuckerberg with nonvoting shares he can sell toward a potential tax bill, in exchange for a commitment to remain a resident of California or wherever Meta is headquartered for eight years, according to the company’s filing and statements. The arrangement is tied to Proposition 40, a proposed tax on billionaires that California voters are due to consider on November 3, 2026. Meta plans to issue a new class of nonvoting Class C shares in January 2027. The company says the shares are intended to help raise capital, fund acquisitions and compensate employees while preserving the voting power of existing shareholders. Zuckerberg could sell 20% of the new shares immediately, according to the company’s description of the agreement. The filing says the remaining portion could be sold in stages over eight years, subject to continued residence and stated exceptions. Meta’s account of discussions with its board says Zuckerberg raised the possibility of moving his primary residence outside California because of the proposed measure. At a dinner with board members on September 9, he said he was considering listing his Palo Alto home, according to...