Meta Issues Special Shares to Mark Zuckerberg to Ensure Residency in California
Meta Platforms has implemented a unique compensation structure designed to prevent CEO Mark Zuckerberg from relocating his primary residence out of California. The move comes in response to potential tax implications stemming from the proposed Proposition 40, which would introduce a billionaire tax in the state. To facilitate this, Meta's board issued non-voting shares to Zuckerberg, allowing him to gain liquidity without sacrificing his significant voting control over the company. In exchange for these special shares, Zuckerberg has committed to remaining a resident of California or the company's headquarters for at least eight years while serving in a full-time leadership capacity.