Meta Platforms has reached an agreement with CEO Mark Zuckerberg to keep him living in California after he warned he might leave if voters approve a proposed wealth tax next month.

Under the deal announced Wednesday, Meta will issue Zuckerberg non-voting shares that he can sell to help pay a potential multibillion-dollar tax bill without sacrificing his voting control of the company. In exchange, Zuckerberg has committed to remain a resident of California, or wherever Meta is headquartered, for eight years.

Zuckerberg, whose estimated net worth is approximately $240 billion, reportedly told Meta he was considering moving his primary residence out of California because Proposition 40 could expose him to a substantial tax liability.

The ballot measure would impose a one-time 5% tax on the state's billionaires. California is home to as many as 250 billionaires with a combined net worth exceeding $2 trillion, although political analysts say the proposal's passage is far from certain.

Under the arrangement, Zuckerberg can immediately sell 20% of the Class C shares he receives. That portion represents 10% of his overall economic stake in Meta, potentially allowing him to cover the tax without selling voting shares that help preserve his control of the company.

Meta also announced plans to introduce a new class of non-voting Class C common stock in January 2027, effectively creating a two-for-one stock split. The company said the new shares would help fund acquisitions and retain top talent while maintaining Zuckerberg's control.

The agreement comes as Meta anticipates major financing needs for its growth plans involving artificial intelligence. Company forecasts described in a filing indicate Meta could need to raise hundreds of billions of dollars over several years, beginning as early as fall 2026.

A special committee of Meta's board concluded that keeping Zuckerberg in a leadership role and managing the company from its California headquarters was critically important amid what it described as unprecedented competition in the industry.

The arrangement highlights the potential financial and business consequences of California's proposed wealth tax, particularly for billionaires whose fortunes are largely tied to company stock.