Finance

Zuckerberg will receive $700 million per year from Meta’s new dividend


(Bloomberg) — Meta Platforms Inc. Chief Executive Mark Zuckerberg expects to receive about $700 million in annual dividends from the social media giant’s first-ever dividend to investors.

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Meta announced a quarterly cash dividend of 50 cents per share of Class A and Class B common stock beginning in March. Zuckerberg, who holds about 350 million shares, will pay quarterly dividends of about $175 million 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. Typically, faster-growing technology companies eschew dividends and instead use earnings to develop new products or make expensive acquisitions. Meta has invested heavily in artificial intelligence projects, and its acquisition prospects are shrinking in the face of opposition from regulators.

The stock nearly tripled in 2023 after Meta laid off about 21,000 employees and narrowed its priorities. A new dividend and an additional $50 billion in stock buybacks could win more patience from Zuckerberg’s investors who have long bet on artificial intelligence and the Metaverse.

The documents show Zuckerberg’s total compensation for 2022 is $27.1 million, which includes personal security expenses and a base salary of $1. Meta has not yet reported executive compensation for last year.

A company spokesman declined to comment.

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