Mark Zuckerberg, the CEO of the biggest social network of the world, has decided that he is a $1-a-year man. According to the Bloomberg Billionaires Index, Facebook’s head is actually the 22nd richest man of the world. But, as per the regulatory filing that was made with the US Securities and Exchange Commission, Mr. Zuckerberg was only paid a salary of $1 in 2013. This is down from the salary he was paid in 2012 before Facebook went public, which amounted to $503, 205. It seems that the brains behind Facebook is attempting to follow the path that was taken by other technology moguls of Silicon Valley who had also chosen to take an annual salary of $1 as a symbol because they were already wealthy.
The practice was popularized by Apple’s late co-founder Steve Jobs and it is also followed today by Google co-founders Sergey Brin and Larry Page, amongst others. All these individuals are in possession of sizable equities in their own respective companies. Having a total wealth of $27 billion, Mr. Zuckerberg holds the ownership of Facebook shares that give him about 61.6% voting power in the social network. This information was provided in the filing. It was last year that net worth of the social network’s founder ballooned as the stock of the company saw a double increase in its value.
The 29 year old, who created the social network in a college dorm with a bunch of his roommates, is also ramping up his philanthropy and public service by starting a group named Internet.org, which has undertaken the goal of connecting the whole world to the internet. Last year, the total compensation of Facebook’s CEO had been $653, 165, which was a reduction from $1.99 million in 2012. The filing states that apart from the $1 salary, the amount included fuel, passenger fees, catering and crew costs for using the private planes for personal reasons, which is a part of his security program.
The filing also mentioned that even last year; the chief executive officer had earned $3.3 billion when he had chosen to exercise stock options for purchasing 60 million shares. About 41.35 million of those shares had then been offered by Mr. Zuckerberg in a secondary offering by the social network in December. The company had said that at that time, the CEO would use most of the proceeds for paying the tax that were incurred in relation to the transaction. 18 million shares had also been gifted by Mark Zuckerberg to charity.
The compensation of other Facebook leaders also fell from the 2012 level. $16.2 million was given to Sheryl Sandberg, the chief operating officer of the social network as total compensation for 2013 as opposed to the $26.2 million that had been given a year before. However, the Bloomberg Billionaires Index indicated that Ms. Sandberg became a billionaire in January of this year when the stock value of the social network soared. Facebook seems to have come a long way since its IPO in May 2012.