Meta’s move to pay a dividend sends a signal about the company’s view of its growth potential.
Meta Platforms Inc. CEO Mark Zuckerberg will receive about $700 million annually in dividends from the social media giant’s first-ever dividend to investors.
Meta announced a quarterly cash dividend of 50 cents per share on Class A and Class B common stock beginning in March. Zuckerberg, who holds about 350 million shares, will pay about $175 million per quarter before taxes, according to data compiled by Bloomberg.
Meta’s move to pay a dividend sends a signal about the company’s view of its growth potential. Typically, faster-growing technology companies eschew dividends and instead use earnings to develop new products or make expensive acquisitions. Although Meta has invested heavily in artificial intelligence projects, its acquisition prospects are shrinking in the face of regulatory opposition.
The stock nearly tripled in 2023 after Meta laid off about 21,000 employees and narrowed its priorities. A new dividend and an additional $50 billion in stock buybacks may win more patience from investors who have made Zuckerberg’s long-term bets on artificial intelligence and the Metaverse.
The documents show that Zuckerberg will receive a total compensation of $27.1 million in 2022, which includes private security expenses and a base salary of $1. Meta has not released last year’s executive compensation.
A company spokesman declined to comment.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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