Meta announced an agreement with CEO Mark Zuckerberg to grant him sellable non-voting shares to cover potential tax liabilities of billions of dollars if California's Proposition 40 passes. In exchange, Zuckerberg committed to residing in California or at Meta's headquarters for eight years. Proposition 40, scheduled for a vote next month, proposes a one-time 5% wealth tax on California billionaires. Zuckerberg, with an estimated net worth of $240 billion, had previously indicated he might relocate from the state if the measure passed. Under the new arrangement, he can immediately sell up to 20% of his Class C shares, representing 10% of his economic interest in the company, while retaining full voting control. Meta plans to issue new non-voting Class C common stock in January 2027, structured as a two-for-one split effect. The deal allows Zuckerberg to liquidate shares specifically earmarked for tax obligations without diluting his governance authority over the company.