MARK ZUCKERBERG’S BASE SALARY IS $1 BUT OTHER INCOME IS $24.4 MILLION

Mark Zuckerberg holds the distinction of being Meta's lowest-paid employee, at least on paper. In 2023, his base salary was a modest $1, a stark contrast to the $379,000 median income for other employees at the tech giant, Fortune reported.

When compared to the broader tech industry, where salaries typically range from $35,000 to $120,000 depending on the role (according to Indeed), Zuckerberg's $1 salary seems even more symbolic.

However, don't let the nominal base pay fool you. Despite not taking home a bonus, Zuckerberg's compensation still amounted to millions for the company. In a proxy filing statement released before the annual shareholder meeting in May, it was revealed that the Facebook founder received $24.4 million in "other compensation", a significant portion of which covered his security expenses.

Zuckerberg's security costs, attributed to what Meta described as a "year of efficiency", have seen fluctuations. In 2023, Meta disclosed an increase in his personal security pre-tax allowance by 40%, from $10 million in 2018 to around $14 million. This news came shortly after the company laid off 11,000 employees, leading to speculation about a possible link between the two events.

Also read: Mark Zuckerberg avoids personal liability in Meta addiction suits

Despite subsequent rounds of job cuts at Meta, Zuckerberg's spending on security has slightly decreased. In 2022, he spent $14,829,245 on personal security, including at his residences and during personal travel. In contrast, during Meta's "year of efficiency" in the following year, his security expenses totalled $9,431,139. This compensation also included nearly $1 million for the "costs related to personal usage of private aircraft."

Meta justified these substantial costs by citing "specific threats" to Zuckerberg due to his prominent role as the face of the company. They noted that negative sentiment toward Meta often gets associated with Zuckerberg personally. The company stated in the filing, "Mr Zuckerberg is one of the most recognised executives in the world, largely due to the size of our user base and our continued exposure to global media, legislative, and regulatory attention."

Regarding his salary, Zuckerberg has been part of the "dollar salary club" since 2013, alongside figures like Larry Page, Larry Ellison, and the late Steve Jobs. This club signifies individuals who receive a nominal $1 salary. Over more than a decade, Zuckerberg has earned just $11 in salary.

Despite his minimal official salary, Zuckerberg's wealth has surged. In February, his net worth increased by $28 billion in a single day following Meta's strong fourth-quarter results. Despite a year of cost-cutting measures, including the dismissal of approximately 21,000 employees, Meta doubled its operating margin to 41% and reduced expenses by 8% year over year.

According to Bloomberg data, due to Meta's successful turnaround, which is largely attributed to Zuckerberg's stake in the company, he has surpassed Elon Musk as the world's third-richest person. As of April 23, Zuckerberg's net worth is $176 billion, a substantial increase from around $78 billion a year earlier.

Also read: Leaked emails reveal why Mark Zuckerberg bought Instagram

2024-04-24T17:37:06Z dg43tfdfdgfd