Meta Platforms Inc. CEO Mark Zuckerberg stands to gain over $700 million per year from the social media giant’s first-ever dividend for investors. Meta declared a quarterly cash dividend of 50 cents per share for Class A and B common stock starting in March. According to Bloomberg estimates, Zuckerberg would receive almost $175 million in quarterly payments before taxes, based on his ownership of over 350 million shares.
Meta’s decision to issue a dividend reflects the company’s assessment of its growth potential. Faster-growing technology businesses frequently forego dividends in favor of spending profits to develop new products or make large acquisitions. While Meta invests heavily in artificial intelligence programs, its acquisition chances are shrinking in the face of regulatory opposition.
After Meta dismissed over 21,000 people in 2023. The new dividend and an additional $50 billion in share buybacks may increase investors’ patience with Zuckerberg’s long-term investments in artificial intelligence and the metaverse. According to records, Zuckerberg received $27.1 million in total remuneration in 2022, which included private security expenditures and a $1 base salary. Meta has yet to declare its executive compensation for last year. The spokeswoman for the corporation declined to comment.
