Meta's board moved fast to keep Mark Zuckerberg in California, cutting him a deal that lets him cash out billions without giving up control, after he hinted he might leave over the state's new wealth tax.

• Zuckerberg threatened to leave California as the state's new wealth tax on unrealized gains loomed, following Google co-founder Sergey Brin, who already left for Florida and saved billions in taxes.
• Meta's board responded by letting Zuckerberg take $20 billion in cash off the table without losing his voting control, since his shares carry outsized voting power even though he owns a smaller slice of the company.
• The deal matters because Meta sees Zuckerberg as essential to its AI push and didn't want to risk losing him to a lower-tax state.
• California Governor Gavin Newsom and a state lawmaker are now publicly clashing over the optics, with the lawmaker arguing Zuckerberg's decision to stay proves billionaires will pay the new tax rather than flee.
• Critics argue the wealth tax is risky because it taxes paper gains before a founder has actual cash, which could push other wealthy residents and businesses out of the state.

Outlook: Watch for more billionaires and companies to test whether California's wealth tax drives an exodus, with Zuckerberg's case treated as the exception rather than the rule.