9 ms·

Does Zuckerberg take equity compensation? I thought he just owned ~14% of FB.

by jfdbcv 4y ago

airstrike 4y ago
You're right, he has given up equity comp. I was curious so went looking... Based on the latest proxy, he does not take any equity compensation. He only gets his $1 salary, a corporate private jet for business travel and $10M / year "to cover additional costs related to his and his family's personal security. This allowance is paid to Mr. Zuckerberg net of required tax withholdings, and Mr. Zuckerberg must apply the net amount towards additional personnel, equipment, services, residential improvements, or other security-related costs." https://www.bamsec.com/filing/132680122000043/1?cik=1326801&hl=160773:161086&hl_id=41fcxtvr6 https://www.bamsec.com/filing/132680122000043/1?cik=1326801&...
- MerManMaid 4y ago
  Just so everyone is clear here, $1 salary + travel/security rounds out to $27,000,001 for 2021. Additionally, travel/security don't seem to have any hard spending limit and alleviates Zuck's personal tax liability. (by $27M anyway) Per the filing you linked: " Mr. Zuckerberg uses private aircraft for personal travel in connection with his overall security program (including, beginning in 2022, a private aircraft that is indirectly and wholly owned by Mr. Zuckerberg and operated by an independent charter company). On certain occasions, Mr. Zuckerberg may be accompanied by guests when using private aircraft. " "the costs of Mr. Zuckerberg's security program vary from year to year depending on requisite security measures, his travel schedule, and other factors." (Emphasis mine)
- lovich 4y ago
  That says requested and doesn’t specify what he actually receives which is weasely enough to make me question the word choice
  - airstrike 4y ago
    That's not how proxies work
    - lovich 4y ago
      Does the wording here not allow for a different result than what is implied? I’m not familiar with the specific legalities around this document
      - airstrike 4y ago
        There is generally very little that is weasely "implied" in SEC filings. The company is representing those facts to shareholders (maybe even more so in a proxy filing, which is what shareholders must read before voting at their annual general meeting). So every single word is very heavily scrutinized to avoid ambiguity, with the text remaining mostly constant over the years except for what really needs to be updated to avoid any inadvertent change in meaning. The excerpt I quoted was written for a different purpose (namely to explain the $10M / year and whether the compensation committee deems it appropriate), so perhaps you feel that the language is somewhat vague as far as answering your question goes. I actually think it's pretty clear as it ends with > "has requested to receive only $1 in annual salary and does not receive any bonus payments, equity awards, or other incentive compensation." But earlier on in the document (https://www.bamsec.com/filing/132680122000043/1?cik=1326801&hl=154191:154469&hl_id=vy-fnxrsa https://www.bamsec.com/filing/132680122000043/1?cik=1326801&...), they do make the explicit assertion that you are looking for: > "2021 Equity Awards. Mr. Zuckerberg did not receive any additional equity awards in 2021 because our compensation, nominating & governance committee believed that his existing equity ownership position sufficiently continued to align his interests with those of our shareholders."

Does Zuckerberg take equity compensation? I thought he just owned ~14% of FB.

by jfdbcv 4y ago

Does Zuckerberg take equity compensation? I thought he just owned ~14% of FB.

You're right, he has given up equity comp. I was curious so went looking... Based on the latest proxy, he does not take any equity compensation. He only gets his $1 salary, a corporate private jet for business travel and $10M / year "to cover additional costs related to his and his family's personal security. This allowance is paid to Mr. Zuckerberg net of required tax withholdings, and Mr. Zuckerberg must apply the net amount towards additional personnel, equipment, services, residential improvements, or other security-related costs." https://www.bamsec.com/filing/132680122000043/1?cik=1326801&hl=160773:161086&hl_id=41fcxtvr6 https://www.bamsec.com/filing/132680122000043/1?cik=1326801&...

MerManMaid 4y ago
Just so everyone is clear here, $1 salary + travel/security rounds out to $27,000,001 for 2021. Additionally, travel/security don't seem to have any hard spending limit and alleviates Zuck's personal tax liability. (by $27M anyway) Per the filing you linked: " Mr. Zuckerberg uses private aircraft for personal travel in connection with his overall security program (including, beginning in 2022, a private aircraft that is indirectly and wholly owned by Mr. Zuckerberg and operated by an independent charter company). On certain occasions, Mr. Zuckerberg may be accompanied by guests when using private aircraft. " "the costs of Mr. Zuckerberg's security program vary from year to year depending on requisite security measures, his travel schedule, and other factors." (Emphasis mine)
lovich 4y ago
That says requested and doesn’t specify what he actually receives which is weasely enough to make me question the word choice
- airstrike 4y ago
  That's not how proxies work
  - lovich 4y ago
    Does the wording here not allow for a different result than what is implied? I’m not familiar with the specific legalities around this document
    - airstrike 4y ago
      There is generally very little that is weasely "implied" in SEC filings. The company is representing those facts to shareholders (maybe even more so in a proxy filing, which is what shareholders must read before voting at their annual general meeting). So every single word is very heavily scrutinized to avoid ambiguity, with the text remaining mostly constant over the years except for what really needs to be updated to avoid any inadvertent change in meaning. The excerpt I quoted was written for a different purpose (namely to explain the $10M / year and whether the compensation committee deems it appropriate), so perhaps you feel that the language is somewhat vague as far as answering your question goes. I actually think it's pretty clear as it ends with > "has requested to receive only $1 in annual salary and does not receive any bonus payments, equity awards, or other incentive compensation." But earlier on in the document (https://www.bamsec.com/filing/132680122000043/1?cik=1326801&hl=154191:154469&hl_id=vy-fnxrsa https://www.bamsec.com/filing/132680122000043/1?cik=1326801&...), they do make the explicit assertion that you are looking for: > "2021 Equity Awards. Mr. Zuckerberg did not receive any additional equity awards in 2021 because our compensation, nominating & governance committee believed that his existing equity ownership position sufficiently continued to align his interests with those of our shareholders."