Facebook’s slew of newly wealthy employees could “significantly impact” California’s economy during the next few years, said H.D. Palmer, deputy director of external affairs for the California Department of Finance.
The closest analogue is the 2004 Google IPO,” he said. “Its benefit to the state’s general fund was in the neighborhood hundreds of millions– at least $400 million.”
Facebook, based in Menlo Park, Calif., afforded generous pre-IPO stock options to as many as 1,000 of its employees. They now stand to make a fortune when the stock goes public. One of the ways the state will make money is when employees cash out their shares and then have to pay taxes.
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