Business Maverick

Business Maverick

Zuckerberg to get $700m a year from Meta’s new dividend

Zuckerberg to get $700m a year from Meta’s new dividend
Mark Zuckerberg, CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC. (Photo by Alex Wong/Getty Images)

Meta Platforms CEO Mark Zuckerberg stands to receive a payout of about $700-million a year from the social media giant’s first-ever dividend for investors.

Meta announced a quarterly cash dividend of 50 cents a share for Class A and B common stock beginning in March. With Zuckerberg holding about 350 million shares, he would take home 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, faster-growing tech companies eschew dividends in favour of using earnings to develop new products or make expensive acquisitions. While Meta is spending big on artificial intelligence initiatives, its acquisition prospects are dwindling in the face of regulatory opposition.

Read More: Meta Plans $50 Billion Buyback in Bid to Win Over Investors 

After Meta fired about 21,000 people and narrowed its priorities, the stock almost tripled in 2023. The new dividend and an additional $50-billion in share buybacks may win more patience from investors with Zuckerberg’s long-term bets on artificial intelligence and the metaverse.

Zuckerberg took home $27.1-million in total compensation in 2022, including private security costs and a base salary of $1, according to filings. Meta hasn’t yet reported executive compensation for last year. 

A spokesperson for the company declined to comment.

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