Meta CEO Mark Zuckerberg will receive $700 million annually. Meta exceeded Wall Street expectations with $40 billion in sales in the previous quarter as the tech giant announced its first quarterly dividend.
Despite a significant 22% reduction in staff, streamlining the headcount to approximately 19,000, Meta reported a remarkable threefold increase in quarterly profits, reaching $14 billion. According to The Guardian, this surge was attributed to a rebound in advertising sales. As part of its financial strategy, Meta also initiated a substantial $50 billion share buyback.
Meta's sizeable stock buyback has allayed investor worries about Meta's expenditures related to the metaverse, a virtual world that Zuckerberg hopes will replace smartphones.
(Photo : Alex Wong/Getty Images)
Mark Zuckerberg, CEO of Meta, testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024, in Washington, DC. The committee heard testimony from the heads of the largest tech firms on the dangers of child sexual exploitation on social media.
Mark Zuckerberg Wants More
Mark Zuckerberg, announcing the inaugural dividend of 50 cents per share, emphasized that the $1.25 billion payout to investors is the first installment of regular dividends. With the Meta CEO holding around 350 million shares, the continuation of a similar dividend payout in subsequent quarters could see him accrue approximately $700 million in the first year.
In contrast, the 39-year-old executive's total compensation in 2022, including private security costs and a nominal $1 base salary, amounted to $27 million- the latest available figures. Since the start of 2024, Mark Zuckerberg's wealth has surged by over $14 billion. He is the fifth-richest person in the world, with a net worth of $142 billion, per Bloomberg Billionaire's Index.
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Mark Zuckerberg wants to extend the tech firm's efficiency efforts, focusing on lean operations and not accelerating hiring, following Meta's impressive fourth-quarter financials, per CNBC. The tech mogul told investors at an earnings conference a year ago that 2023 would be the "year of efficiency," and Meta will become "stronger and more nimble."
Meta Blasted Over Weak Child Safety Measures
A US Senate panel recently criticized Mark Zuckerberg. Sen. Lindsey Graham asserted that Meta's products were "killing people," and Sen. Dick Durbin characterized online child exploitation as a national crisis. The New York Post reported that during a heated exchange with Sen. Josh Hawley, Zuckerberg stood up, addressed the parents of victims, and apologized, expressing empathy for their suffering.
However, critics, including New Mexico Attorney General Raul Torrez, who is suing Meta and Zuckerberg over alleged failures to protect children from predators, dismissed the apology as "too little, too late."
Meta, TikTok, X (formerly Twitter), and other social media heads spoke before the Senate Judiciary Committee as concerns from legislators and parents grew, as per a report from Mint. They emphasized their platforms' safety safeguards and collaboration with organizations and law enforcement to safeguard children. Moreover, numerous US states have sued Meta for purposely designing Instagram and Facebook features to encourage addiction among young people.
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