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Facebook CEO reaps $3.3B gain from stock options

Mark Zuckerberg Attends Mobile World Congress
SAN FRANCISCO (AP) - Facebook CEO Mark Zuckerberg reaped a $3.3 billion gain last year by exercising stock options in the social networking company that he founded in a Harvard University dorm room.

The windfall saddled Zuckerberg with a huge tax bill, even though he limited his Facebook salary to just $1, according to regulatory documents filed Monday.

It marks the second straight year that Zuckerberg has realized a huge gain on the holding that he has accumulated in Facebook Inc. since he started the company in 2004. In 2012, Zuckerberg made $2.3 billion off his stock options.

Zuckerberg, 29, now has exhausted his supply of stock options after exercising 60 million of them last year a price of 6 cents per share. He then sold 41.35 million shares for $55.05 apiece in December, primarily to pay for his tax bill on the gains.

Zuckerberg and his wife, Priscilla Chan, also donated 18 million Facebook shares to a Silicon Valley nonprofit. The December gift, then valued at nearly $1 billion, landed the couple at the top of The Chronicle of Philanthropy's annual list of the most generous Americans.

Even after selling and donating so much Facebook stock, Zuckerberg still owns 426.3 million Facebook shares currently worth $25.7 billion. The stock has more than doubled in value during the past year as Zuckerberg fulfilled his promise to sell more ads on the smartphones and tablet computers that bring in most of the traffic to Facebook's social networking service.

The Menlo Park, Calif., company now gets more than half of its ad revenue from mobile devices, up from 23 percent at the beginning of last year.

Like many company founders who have gotten wealthy off their early stakes, Zuckerberg asked Facebook to limit his annual salary to $1 annually. Besides that token sum, Zuckerberg also received perquisites valued at $653,164. All but $3,000 of that amount went toward Zuckerberg's bills for personal travel on chartered jets.

Excluding stock option gains, Zuckerberg's total compensation last year plunged 67 percent from nearly $2 million in 2012.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pensions, a benefit that Facebook and most other technology companies don't provide.

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lenders1 April 01 2014 at 4:17 PM

Pizzaman.. " That's the real America "

Flag Reply +1 rate up
pruettee April 01 2014 at 6:11 PM

Go for it young man. I wish I had known him and facebook back in the good old days. Oh well, a day late and a dollar short. I eat three square meals a day. My taxes certainly are not in his range.

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skydrill1 April 01 2014 at 5:13 PM

I do not understand the animosity toward Zukerberg at all. He had an idea that caught on and has made him a billionaire. No one was hurt---no one got screwed out of anything. What he chooses to do or not to do with his money is his business. He damned sure doesn't owe anyone anything at all.

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1 reply
standfordgrays skydrill1 April 02 2014 at 3:06 AM

his original partners got screwed... he settled out of court, but they were shorted on what they should have made.

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Jeff April 01 2014 at 9:12 PM

Hey Mark, I only want 2 million dollars, so if you are feeling generous I won't hesitate to take it.

Flag Reply +1 rate up
brennemanbelkin April 01 2014 at 11:19 PM

He spent more on travel last year than I've earned in my entire life.
And I've worked hard for the past fifty years.
Stay in school kids.

Flag Reply +2 rate up
steves1709 April 01 2014 at 11:40 PM

FB has neared its peak, if it hasn't passed it yet. I wouldn't be going too long on this one.

Flag Reply +1 rate up
Stephen April 01 2014 at 5:00 PM

". He then sold 41.35 million shares for $55.05 apiece in December, primarily to pay for his tax bill on the gains."
totally incompetent reporting

Flag Reply +1 rate up
YourFtr April 02 2014 at 1:20 AM

Corporations are national or international organizations........
But Unions have Locals....????
For what reason.....??
Divide and conquor....!?
by the union leadership !??

Flag Reply +1 rate up
jab2165 April 01 2014 at 1:42 PM

One day,we all leave this world. Whether we are rich or poor.

Flag Reply +3 rate up
greenliks April 01 2014 at 3:10 PM

Schmuklberger is almost as worthless as the ceo of time warner cable who's getting $ 80 million to leave after 1 year doing nothing but screwing over customers.

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