4 ms·

Even less of news when he has to make this type of sale to pay taxes.

anamax 14y ago
> Even less of news when he has to make this type of sale to pay taxes. What did he do so he owes taxes? Exercising in-the-money options is taxable. Receiving stock grants is a taxable event. Owning stock (or options) in a company that goes public is not a taxable event. Note that he got to sell (some?) now. Ordinary employees are still in lockout.
- guimarin 14y ago
  he excercised twice as many shares.
- otterley 14y ago
  Does anyone know why, as a Facebook employee, Mark Zuckerberg is not subject to the same 90-day lockup period for disposing of his shares on the public market as the rest of the employees? EDIT: The lock-up period isn't an SEC requirement; it's an agreement made with the underwriters. The S-1 filing states: "Morgan Stanley & Co. LLC may, in its sole discretion, permit our executive officers, our directors, and the selling stockholders to sell shares prior to the expiration of the restrictive provisions contained in the “lock-up” agreements with the underwriters." And it looks like they let him do just that.
  - te_chris 14y ago
    He's CEO, bitch? (sorry), but maybe other directors were allowed to as well? I imagine my first answer is sadly not far from the truth..
  - deleted 14y ago
    [deleted]
- a3d6g2f7 14y ago
  In effect, Zuckerberg just took an enormous salary in the form of exercising options. He has to pay tax on that income. Let's say he exercised options that earned him $5BB. (I don't know what the exact amount was. It was in the billions, no doubt.) So let's say maybe he owes $2BB in taxes. As for the rest of his shares and what they are "worth", those are going to fluctuate in value, based on the company's performance. Now, let's say you are a FB shareholder. Ask yourself as a shareholder if the FB CEO has earned a $5BB salary. What has he done for you? How is your FB stock doing? OK, so let's say you think he is a genius and certainly deserves $5BB. Then ask yourself why he would want $5BB in income in _one year_. He wants it all right now. That's an awful lot of income. And a lot of tax to pay. Why the rush to cash out? Whatever happens to Facebook, he is set for life. Good for him, but not necessarily good for Facebook shareholders. He has little incentive to deliver. Wall St. is going to love him, I can already tell.
  - koala_advert 14y ago
    Why use BB to represent billion, as opposed to one B? Seems unnecessary.
    - Drbble 14y ago
      It's standard English.
      - EwanToo 14y ago
        I'm not sure it is. MM is semi-standard English, at least in the US, because M can be confused with the M used for one thousand. But B doesn't get confused with anything, and I've never seen BB written anywhere before this..
        stephengillie 14y ago
        https://secure.wikimedia.org/wikipedia/en/wiki/Long_and_short_scales https://secure.wikimedia.org/wikipedia/en/wiki/Long_and_shor...

> Even less of news when he has to make this type of sale to pay taxes. What did he do so he owes taxes? Exercising in-the-money options is taxable. Receiving stock grants is a taxable event. Owning stock (or options) in a company that goes public is not a taxable event. Note that he got to sell (some?) now. Ordinary employees are still in lockout.

guimarin 14y ago
he excercised twice as many shares.
otterley 14y ago
Does anyone know why, as a Facebook employee, Mark Zuckerberg is not subject to the same 90-day lockup period for disposing of his shares on the public market as the rest of the employees? EDIT: The lock-up period isn't an SEC requirement; it's an agreement made with the underwriters. The S-1 filing states: "Morgan Stanley & Co. LLC may, in its sole discretion, permit our executive officers, our directors, and the selling stockholders to sell shares prior to the expiration of the restrictive provisions contained in the “lock-up” agreements with the underwriters." And it looks like they let him do just that.
- te_chris 14y ago
  He's CEO, bitch? (sorry), but maybe other directors were allowed to as well? I imagine my first answer is sadly not far from the truth..
- deleted 14y ago
  [deleted]
a3d6g2f7 14y ago
In effect, Zuckerberg just took an enormous salary in the form of exercising options. He has to pay tax on that income. Let's say he exercised options that earned him $5BB. (I don't know what the exact amount was. It was in the billions, no doubt.) So let's say maybe he owes $2BB in taxes. As for the rest of his shares and what they are "worth", those are going to fluctuate in value, based on the company's performance. Now, let's say you are a FB shareholder. Ask yourself as a shareholder if the FB CEO has earned a $5BB salary. What has he done for you? How is your FB stock doing? OK, so let's say you think he is a genius and certainly deserves $5BB. Then ask yourself why he would want $5BB in income in _one year_. He wants it all right now. That's an awful lot of income. And a lot of tax to pay. Why the rush to cash out? Whatever happens to Facebook, he is set for life. Good for him, but not necessarily good for Facebook shareholders. He has little incentive to deliver. Wall St. is going to love him, I can already tell.
- koala_advert 14y ago
  Why use BB to represent billion, as opposed to one B? Seems unnecessary.
  - Drbble 14y ago
    It's standard English.
    - EwanToo 14y ago
      I'm not sure it is. MM is semi-standard English, at least in the US, because M can be confused with the M used for one thousand. But B doesn't get confused with anything, and I've never seen BB written anywhere before this..
      - stephengillie 14y ago
        https://secure.wikimedia.org/wikipedia/en/wiki/Long_and_short_scales https://secure.wikimedia.org/wikipedia/en/wiki/Long_and_shor...