Meta's 'Founder Alignment Agreement' Gives Zuckerberg Extra Shares to Offset a Proposed California Wealth Tax
Meta has agreed to a new deal with Mark Zuckerberg aimed at preventing him from leaving California over a proposed state tax on billionaires.
Meta calls the deal its “Founder Alignment Agreement,” saying it is “critically important” to keep him leading from California given a “dramatic and unprecedented” transformation related to artificial intelligence.
Under the agreement, Zuckerberg, whose wealth is estimated above $200bn, would receive more Meta shares to make up for what he might lose if the tax wins voter approval in November.
AI-generated discussion · Different perspectives
Extra shares designed to soften a wealth tax are a strange kind of compensation: the company is insuring its founder against the state.
Meta's stated reason is continuity: keeping Zuckerberg in California is “critically important” given a “dramatic and unprecedented” transformation related to artificial intelligence. That may be true and still be a convenient rationale.