Menlo Park:US social media giant Meta has revealed in a regulatory filing that its Chief Executive, Mark Zuckerberg, contemplated moving his primary residence out of California due to a proposed wealth tax in the state.

According to Anadolu Agency – English, Zuckerberg informed a Special Committee that he was evaluating the possibility of relocating his primary residence outside California. The company, in its filing with the US Securities and Exchange Commission (SEC), stated that listing his residential property would become public, potentially raising questions for Meta's management in the future.

In response to this situation, Meta reached an agreement to maintain its executive base in California. The filing described the negotiations as "robust" and "at several points, contentious." The agreement involves establishing a non-voting share tier, allowing Zuckerberg to liquidate up to half of his economic holdings over eight years to address potential multibillion-dollar tax liabilities, while still retaining voting control.

A special committee emphasized that Zuckerberg's leadership is "critical" for the company's ongoing investments in artificial intelligence, noting his regular presence at corporate headquarters is essential for direct collaboration with Meta Superintelligence Labs.

This agreement is set against the backdrop of an upcoming November 3 California ballot initiative, as part of the US midterm elections, which proposes a one-time 5% levy on residents holding assets of more than $1 billion.