(Bloomberg) — Meta Platforms Inc. CEO Mark Zuckerberg will receive a payout of about $700 million a year from the social media giant’s first-ever dividend for investors.
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Meta announced a quarterly cash dividend of 50 cents per share starting in March for Class A and B common stock. Because Zuckerberg owned about 350 million shares, he would take home about $175 million in each quarterly pretax payment, according to Bloomberg data take home.
Meta’s decision to pay a dividend sends a signal about the company’s view of its growth potential. Often, faster-growing technology companies eschew dividends and use their profits to develop new products or make expensive acquisitions. While Meta is spending big on artificial intelligence initiatives, its acquisition prospects are declining due to regulatory opposition.
After Meta laid off about 21,000 people and downsized its priorities, its stock nearly tripled in 2023. The new dividend and an additional $50 billion in stock buybacks could give investors more patience 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 the documents. Meta has not yet reported any director remuneration for the past year.
A company spokesperson declined to comment.
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