Meta Engineers New Stock Class to Keep Mark Zuckerberg in California Ahead of Prop 40 Wealth Tax Vote

Meta ($META) has engineered a new class of nonvoting stock to prevent CEO Mark Zuckerberg from leaving California over the state's proposed Proposition 40 billionaire wealth tax, which could result in an estimated $11 billion personal tax liability for Zuckerberg.
Under the arrangement, Meta created a new Class C nonvoting stock distributed as a dividend-structured split, allowing Zuckerberg to sell up to 20% of those shares (representing 10% of his economic stake) to cover potential liabilities without dropping his voting control below 53%. In exchange, Zuckerberg committed to remaining a California resident for eight full years.
The proposed ballot measure, facing a crucial November 3, 2026 vote, has deeply split the state's political establishment and billionaire class. While prominent tech leaders have funded heavy opposition and departures—including Google co-founders Larry Page and Sergey Brin—Nvidia ($NVDA) CEO Jensen Huang publicly stated he has no intention of leaving, calling his ability to pay a privilege. Stanford researchers estimate the tax could ultimately leave California financially worse off due to capital flight, while proponents project a $100 billion windfall for healthcare programs.