(Bloomberg) – Meta Platforms Inc. Chief Executive Mark Zuckerberg will receive about $700 million a year in the social media giant's first dividend for investors.
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Meta announced a quarterly cash dividend of 50 cents per share on its Class A and B common stock beginning in March. Zuckerberg owns about 350 million shares and will take home about $175 million pre-tax in quarterly payments, according to data compiled by Bloomberg.
Meta's dividend payout moves signal its view of its growth potential. Fast-growing technology companies often avoid dividends in favor of using profits to develop new products or make expensive acquisitions. Meta is investing heavily in artificial intelligence efforts, but its prospects for acquisitions have dwindled in the face of regulatory opposition.
The stock nearly tripled in 2023 after Meta laid off about 21,000 people and narrowed its priorities. A new dividend and an additional $50 billion in share buybacks may further strengthen investors' patience with Mr. Zuckerberg's long-term bet on artificial intelligence and the Metaverse.
Zuckerberg earned a total of $27.1 million in compensation in 2022, including personal security fees and a base salary of $1, according to the filing. Meta has not yet reported executive compensation for last year.
A company spokesperson declined to comment.
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