Salary & Compensation of Mark Zuckerberg, Facebook executives
May 15, 2012
Facebook is expected to have its initial public offering (IPO) this week. In a matter of days, dozens of Facebook employees and executives will become instant billionaires and millionaires.
Take, for instance, Facebook founder and creator Mark Zuckerberg. Zuckerberg owns 28.1% of the company’s Class B shares, which entitles him to ten (10) voting rights per share as opposed to one (1) voting right for each Class A share. After the IPO, Zuckerberg’s ownership will be worth more than $28 billion. That would easily earn him a spot in the Top 10 list of the World’s Richest Persons.
In terms of compensation, however, Zuckerberg is surprisingly not the highest paid executive in Facebook, based on company documents submitted to the Securities and Exchange Commission in April 2012. That title goes to Chief Operating Officer (COO) Sheryl Sandberg, who received a total of almost $31 million in 2011 alone. That includes a base salary of $295,833 plus bonus of $170,508 and a huge stock award of $30.49 million.
Zuckerberg, in contrast, got a total of around $1.7 million in 2011. He received a base salary of $483,333 plus bonus of $445,500. He also enjoyed other compensation amounting to $784,000 majority of which represented the cost of his and his friends’ use of the company-chartered aircraft.
Below is a summary of the salary and compensation received by top Facebook executives last year.
1. Mark Zuckerberg
Title: Chairman and Chief Executive Officer (CEO)
Total Compensation (2011): $1,712,362
- Salary: $483,333
- Bonus: $445,500
- Other Compensation: $783,529
According to the SEC filings, Zuckerberg’s total 2011 compensation reflected the impact of his performance in “growing Facebook’s global user base and developing developer and commercial relationships… and the impact of his leadership and product vision, which contributed to the development and launch of new products, including Open Graph and Timeline.”
2. Sheryl Sandberg
Title: Chief Operating Officer (COO)
Total Compensation (2011): $30,957,954
- Salary: $295,833
- Bonus: $170,508
- Stock Awards: $30,491,613
Sandberg is Facebook’s COO since March 2008. She worked at Google from November 2001 until March 2008, most recently as Vice President for Global Online Sales & Operations. Sandberg was also a former Chief of Staff of the U.S. Treasury Department and previously served as a consultant with McKinsey & Company and as an economist with The World Bank. She holds an A.B. in economics from Harvard University and an M.B.A. from Harvard Business School.
Her 2011 compensation “reflected her contribution to growing revenue, building commercial and developer relationships, growing the Facebook team and excellence in execution in all business-related matters… and reflected her leadership in growing revenue year over year and her strategic guidance on key policy issues both domestically and abroad.”
3. David Ebersman
Title: Chief Finance Officer (CFO)
Total Compensation (2011): $18,761,293
- Salary: $295,833
- Bonus: $170,508
- Stock Awards: $18,294,952
Ebersman is Facebook’s CFO since September 2009. From March 2005 until April 2009, he served in various positions at biotechnology company Genentech, including as Chief Financial Officer and Executive Vice President. Ebersman holds an A.B. in economics and international relations from Brown University.
His 2011 compensation reflected “his contributions in completing [Facebook's] private placement financing, managing preparations for the initial public offering… and building a strong financial foundation for the business.”
4. Mike Schroepfer
Title: Vice President of Engineering
Total Compensation (2011): $24,804,472
- Salary: $270,833
- Bonus: $140,344
- Stock Awards: $24,393,295
Schroepfer is Facebook’s Vice President of Engineering since September 2008. Prior to joining Facebook, he worked as Vice President of Engineering at Mozilla Corporation, an Internet company, from December 2005 to August 2008. He also served in various positions at Sun Microsystems, Inc. He co-founded CenterRun, Inc., a developer of application provisioning software, which was acquired by Sun Microsystems. Schroepfer got his B.S. and M.S. in computer science from Stanford University.
His 2011 compensation reflected his “contribution in developing and overseeing [Facebook's] engineering team, software development efforts, and engineering infrastructure… and his strong leadership of the engineering team, resulting in development of new products for users, developers, and advertisers.”
5. Theodore Ullyot
Title: Vice President, General Counsel and Secretary
Total Compensation (2011): $7,082,294
- Salary: $270,833
- Bonus: $602,500
- Stock Awards: $6,098,317
- Other Compensation: $110,644
Ullyot is Facebook’s Vice President, General Counsel, and Secretary since October 2008. He was a partner at law firm Kirkland & Ellis, LLP from May 2008 until October 2008. He also served as Executive Vice President and General Counsel of ESL Investments, Inc., a private investment firm, and worked as an associate general counsel at AOL Time Warner, Inc. and as a law clerk for U.S. Supreme Court Justice Antonin Scalia and for Judge Michael Luttig of the U.S. Court of Appeals for the Fourth Circuit. Ullyot completed his A.B. in History from Harvard University and a J.D. from the University of Chicago.
His 2011 compensation reflected “his role in certain key litigation and regulatory matters involving [Facebook].”