March 4, 2024

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Zuckerberg will receive $700 million annually from new meta profits

Zuckerberg will receive $700 million annually from new meta profits

(Bloomberg) — Meta Platforms Inc. CEO Mark Zuckerberg is expected to receive compensation of about $700 million annually from the social media giant's first-ever dividend to investors.

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Meta declared a quarterly cash dividend of 50 cents per share on Class A and Class B common stock beginning in March. With Zuckerberg owning about 350 million shares, he will receive about $175 million in each quarterly payment before taxes, according to data compiled by Bloomberg.

Meta's move to pay a dividend sends a signal about the company's view of its growth potential. Often, fast-growing technology companies eschew dividends in favor of using profits to develop new products or make expensive acquisitions. While Meta is spending heavily on AI initiatives, its acquisition opportunities are diminishing in the face of regulatory opposition.

After Meta fired about 21,000 people and narrowed its priorities, the stock has nearly tripled in 2023. New profits and an additional $50 billion in stock buybacks may gain more patience from investors with Zuckerberg's long-term bets on artificial intelligence and the metaverse.

Zuckerberg earned $27.1 million in total compensation in 2022, including private security costs and a $1 base salary, according to the filings. Meta has not yet reported executive compensation for last year.

A company spokesman declined to comment.

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