28, February, 2024
HomeBusinessMark Zuckerberg Set to Earn $700 Million Annually as Meta Introduces New Dividend

Mark Zuckerberg Set to Earn $700 Million Annually as Meta Introduces New Dividend

Published on

Meta Platforms Inc. CEO Mark Zuckerberg is poised to receive a substantial annual payout of approximately $700 million following the announcement of the social media giant’s inaugural dividend for investors.

Read Also | Mark Zuckerberg’s Apology and Senate Grilling: Meta’s Pledge to Tackle Social Media Harms

Meta disclosed a quarterly cash dividend of 50 cents per share for Class A and B common stock, effective from March onwards. Given Zuckerberg’s ownership of about 350 million shares, he is expected to net around $175 million in each quarterly payment before taxes, as per data compiled by Bloomberg.

This strategic move by Meta to initiate dividend payments signifies the company’s confidence in its growth potential. Traditionally, rapidly expanding tech firms often avoid dividends, preferring to reinvest earnings into new product development or costly acquisitions. Although Meta is channeling significant resources into artificial intelligence endeavors, regulatory challenges are limiting its acquisition opportunities.

Following Meta’s restructuring, which involved the termination of approximately 21,000 employees and a refocusing of priorities, the company’s stock nearly tripled in 2023. The introduction of the dividend, coupled with an additional $50 billion earmarked for share buybacks, aims to cultivate patience from investors regarding Zuckerberg’s long-term investments in artificial intelligence and the metaverse.

Read Also | Ram Temple’s Impact: Uttar Pradesh Expects ₹4 Lakh Crore Boost in Tourism

Zuckerberg’s total compensation in 2022 amounted to $27.1 million, encompassing private security costs and a nominal base salary of $1, according to filings. Executive compensation details for the past year are yet to be reported by Meta, and the company declined to provide any comments on the matter.

Latest articles

Exclusive Discounts – Maruti Unveils Massive Savings on MY2023 Vitara, Fronx Models

Maruti Suzuki dealerships are currently rolling out irresistible discounts, exceeding Rs. 1 lakh, on...

Mahindra Set to Unveil 5-Door Thar SUV with Enhanced Features in Q2 FY2025

Mahindra, a prominent player in the Indian automotive market, is set to introduce the...

Renault Scenic E-Tech EV Earns Coveted Car of the Year 2024 Award

Renault's Scenic E-Tech electric SUV has secured the prestigious title of Car of the...

More like this

Expedia Announces 1,500 Jobs Layout Amid Shifting Travel Landscape

Expedia Group is set to trim its global workforce by 9%, amounting to approximately...

Bitcoin Surges Beyond $55,000: Cryptocurrency Market Update and Trends

Bitcoin has experienced an 8.14% surge in the last 24 hours, reaching $55,708.64, marking...

Paytm Shares Surge 5% Amid Leadership Changes: Unraveling the Rally

Paytm's stock witnessed a 5% surge today, spurred by the recent resignation of its...
Enable Notifications OK