Meta requires Zuckerberg to reside in the headquarters jurisdiction for the next eight years

According to foreign media reports, Meta Platforms (META.US) has signed an agreement with the company's CEO, Zuckerberg, requiring him to continue residing in the jurisdiction where the company's headquarters is located for the next eight years. Previously, Zuckerberg stated that he would consider leaving California if the state implements a wealth tax. On Wednesday, Meta stated in a filing that Zuckerberg will "continue to reside in California, or any other jurisdiction where the company headquarters is located, for the next eight years." Meta explained that Zuckerberg's consideration to leave California is due to the proposed wealth tax in the state, which could result in a tax bill amounting to billions of dollars and potentially force him to sell shares with voting rights to pay the taxes. The company noted in the filing that this transaction will issue Class C shares to Zuckerberg, in part to prevent such a scenario. According to the agreement, Zuckerberg may immediately sell up to 20% of the awarded Class C shares, equivalent to 10% of his overall economic interest. This will provide him with liquidity to cope with the potential tax burden brought by California's Proposition 40. The proposal will be decided by California voters next month.