Meta’s board worried that CEO Mark Zuckerberg might leave California over a proposed billionaire tax measure. Directors feared his departure could disrupt the company’s artificial intelligence plans.
A new stock agreement now gives Zuckerberg financial reasons to remain in the state. The deal ties part of his compensation to his continued residency.
The ballot measure would impose a one-time tax on the state’s wealthiest residents. Several billionaires have criticized the proposal and hinted at relocating.
Meta moved quickly to secure its leadership. The board structured the agreement to protect long-term AI investments.
Zuckerberg has led Meta since its founding and remains central to its strategy. His presence is seen as critical to competing in the AI race.
The stock deal adds to his existing holdings while creating a clear incentive to stay. Details of the payout structure were not fully disclosed.
The tax measure still faces a vote, and its outcome remains uncertain. Other tech leaders are watching the situation closely.
