Meta Platforms Inc. CEO, Mark Zuckerberg, is set to receive an annual payout of $700 million from the company’s newly announced dividend scheme. The move by Meta to initiate dividend payments reflects the firm’s perspective on its growth potential. Traditionally, tech companies focused on rapid expansion tend to reinvest earnings into product development or acquisitions rather than paying dividends. However, with Meta’s acquisition opportunities diminishing due to regulatory challenges despite substantial investments in artificial intelligence, the company’s decision to pay dividends signals a shift in strategy.
Following a significant workforce reduction of approximately 21,000 employees and a narrowed focus on core areas, Meta’s stock value nearly tripled in 2023. In addition to the dividend program, Meta plans to undertake $50 billion in share buybacks, aiming to secure more investor support for Zuckerberg’s long-term bets on artificial intelligence and the metaverse.
In 2022, Zuckerberg received a total compensation of $27.1 million, including costs for private security and a symbolic base salary of $1, as per regulatory filings. Executive compensation for the past year has yet to be disclosed by Meta.
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