Facebook IPO shows fat Executive Compensation

Facebook has filed for Initial Public Offering (IPO) to sell its stock public.  Facebook’s estimated value is about $100 billion and it is hoping to raise $5 billion by selling share. Paperwork filed with the Securities and Exchange Commission suggests that a lot of people are going to get rich.

Facebook claims to have 845 million members who are rich source of advertising income. Facebook users upload 250 million photos a day, signal that they “like” items posted by friends about 2.7 billion times a day, and have created a web of 100 billion friends and connections on its site. 

The company makes majority of its money from selling display ads targeted to its users who provide facebook with their person lifestyle data as a condition of registering at the website. Last year, Facebook had $1 billion in profits on revenue of $3.7 billion.

Executive Compensation seems to be generous. A list of executives and their compensation indicates that their wallet are getting fat and fatter.

Mark Zuckerberg, CEO: Zuckerberg made a salary of $483,333 in 2011, in addition to a $220,500 bonus for the first half of 2011. He also received “other” compensation — which covers such things as chartered travel costs and security details — that totaled $783,529. Overall, Zuckerberg received $1,487,362 for 2011,

Sheryl Sandberg, COO:  Sandberg had a salary and bonus of $381,966 in 2011, but was also granted about $30 million in stock awards. Ms Sandberg, who already holds 1.9 million shares in the social network also has  options on a further 38.1 million shares vest over the next five years.

David Ebersman, CFO: David Ebersman, one of the most important Facebook executives that you’ve never heard of, also made $381,966 in salary and bonuses. With stock, his total compensation comes to $18.6 million.

Mike Schroepfer, VP of Engineering:Mike Schroepfer, the vice president of engineering, made $333,833 in salary and bonuses in 2011. Combined with his bonus and stock awards, he made $24.7 million last year.

Theodore W. Ullyot, VP, General Counsel and Secretary: Theodore Ullyot made $749,583 in salary and bonus and was granted about $6 million in stock awards and $110,644 in other compensation..


Large shareholders

Mark Zuckerberg, CEO, holds the most shares — 533.8 million, owning about 28 percent of the company. They will be valued at around $28 billion.

Sheryl Sandberg, COO, holds 1.9 million shares in the social network also has  options on a further 38.1 million shares vest over the next five years.

Peter Thiel, PayPal co-founder, tech entrepreneur, investor and philanthropist has served on Facebook's board since April 2005. According to Facebook's IPO filing, Thiel holds 44.7 million shares which is about 2.5 percent of the company.

Donald Graham, chief executive officer and chairman of the board for The Washington Post Company, has been on Facebook's board of directors for almost three years. Graham holds 1 million restricted stock units.

David Ebersman has been Facebook's chief financial officer since September 2009. Prior to that he served as the CFO for biotechnology firm Genentech. According to the filing, Ebersman holds 2.2 million shares.

Mike Schroepfer, Facebook Vice President of Engineering, has been in his position since September 2008. Before coming to the tech sensation, Schroepfer worked at Mozilla and Sun Microsystems. He holds 2.1 million shares.

 

Marc Andreessen ,Internet browser pioneer, has been a Facebook board member since June 2008. He co-founded venture capital firm Andreessen Horowitz and Netscape Communications. He holds 3.6 million shares.

Ted Ullyot, Facebook General Counsel, holds 1.9 million shares.

Dustin Moskovitz , Facebook co-founder, holds 133.8 million shares, owning 7.6 percent of the company.

Jim Breyer, a managing partner with venture capital firm Accel Partners. holds 201.4 million shares, or 11.4 percent of the company. He is also a board member of Facebook and has been serving in that position since April 2005.


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Reference:
IPO Filing, Facebook