“Can’t Pay the Tax”: Billionaire CEO Who Considered Leaving California Pledges to Stay for 8 Years

Zuckerberg Considered Moving to Avoid the "Billionaire Tax"
Meta Special Committee: "At This Pivotal Moment, Zuckerberg's Presence at Headquarters Is Important"

Meta CEO Mark Zuckerberg considered moving his residence to avoid the so-called “billionaire tax” being proposed in California, but ultimately decided to remain near the company’s headquarters.

Zuckerberg Considered Moving; Meta Special Committee Recommended He Stay

Meta CEO Mark Zuckerberg. Photo by Kim Hyunmin

Meta disclosed the matter separately to the U.S. Securities and Exchange Commission (SEC) on October 21, the day it announced its third-quarter results. According to the filing, Zuckerberg told a special committee of Meta’s board that he was considering moving his residence after California’s “Proposition 40,” which would impose a tax equal to 5% of the wealth of ultra-high-net-worth individuals with assets of at least $1 billion (about 1.327 trillion won), was put to a vote.

Zuckerberg was also reportedly considering selling his home in Palo Alto. However, the special committee determined that he should continue living in California, where Meta is headquartered. The committee said, “At this pivotal moment for the company and the technology industry, it is extremely important for CEO Zuckerberg to continue controlling the company and to remain based at its California headquarters.”

The special committee nevertheless raised concerns that Zuckerberg could face a tax bill of several billion dollars if the measure passes. If he had to sell his Meta shares to pay the tax, his control over the company could be weakened.

In response, the board and the special committee decided to create a new class of non-voting Class C common stock and distribute shares to existing shareholders at a 1:1 ratio, enabling Zuckerberg to maintain his current control, including 60.6% of the voting rights. This would allow him to sell Class C shares to raise funds to pay the wealth tax without losing voting rights.

Under a separate agreement with Meta, Zuckerberg pledged to continue living in California, where the company is headquartered, for eight years as long as he remains in a top executive position at the company. In return, Meta will immediately lift the sale restrictions on 20% of the Class C shares Zuckerberg is set to receive, and will lift restrictions on the remaining 80% in quarterly increments of 2.5% over eight years.

One-Time Tax of 5% of Billionaires’ Net Worth; Tech Titans Consider Leaving

Yonhap News

‘A Huge Success in the 7,000-Won Range’: After Half-Price Ice Cream Comes a ‘2,000-Won Celebration’
Binggrae launches smaller banana-flavored milk at a lower price for the first time in eight years
Volume reduced from 240 ml to 200 ml... Convenience store strategy focused on ultra-low prices

Binggrae has begun selling a smaller-size banana-flavored milk at convenience stores. The half-price strategy that began with ice cream appears to be expanding to beverages.

Binggrae said on the 22nd that it had launched 200 ml banana-flavored milk at convenience stores. First introduced in 1974, Banana-Flavored Milk is a flagship product that has held the top spot in South Korea’s processed milk market. The company had kept its price unchanged since raising the price of the 240 ml product from 1,300 won to 1,500 won in 2018. The new product is smaller, at 200 ml, and costs 1,000 won.

The existing 240 ml banana-flavored milk sold at convenience stores costs 2,000 won. Per 100 ml, the existing product costs about 833 won, while the new product costs 500 won, making it about 40% cheaper. This is the first price reduction since 2018, eight years ago.

A Binggrae representative said, “With high prices putting greater pressure on consumers, we prepared this new product so they can enjoy banana-flavored milk at a reasonable price. We will continue to introduce products that offer consumers more choices.”

Recently, competition in the retail industry has intensified over affordable products at lower prices. Last year, Binggrae introduced Together Miniature, an ice cream priced in the 700-won range exclusively for convenience stores. The product was smaller and cheaper than the original Together ice cream and received a positive response from consumers. It drew attention as an ultra-affordable product that lets consumers enjoy ice cream for less than 1,000 won.

With the new product, Binggrae is expected to target consumers looking for banana-flavored milk at an affordable price at convenience stores.

Proposition 40, dubbed the “billionaire tax,” would impose a one-time tax of 5% of net worth on California residents with a net worth of at least $1 billion. The measure is intended to use the revenue to strengthen healthcare and social safety-net programs, including healthcare coverage for low-income people. Voters are scheduled to decide whether to adopt it in a ballot measure this November, and about 200 billionaires in California are expected to be affected if it takes effect.

As discussions over the billionaire tax gain momentum, more tech industry leaders are leaving California. Google co-founders Larry Page and Sergey Brin, formerly the wealthiest people in California, moved their residences to Florida and Nevada, respectively, making Zuckerberg the richest person in California. By contrast, Nvidia CEO Jensen Huang said he would continue living in California regardless of whether the billionaire tax is adopted.

This content was produced with the assistance of AI translation services.