Facebook co-founder Mark Zuckerberg’s net worth experienced a staggering surge of $28.1 billion following Meta’s quarterly results, which significantly outpaced Wall Street’s predictions, leading to a nearly 20% surge in its shares. With this remarkable increase, Zuckerberg’s net worth now stands at $170.5 billion, marking his highest wealth level to date and propelling him past Bill Gates to claim the fourth position on the Bloomberg Billionaires Index.
This resurgence in Zuckerberg’s wealth marks a significant turnaround from late 2022 when his net worth plummeted to below $35 billion amidst a downturn in tech stocks triggered by inflation and interest rate hikes. However, 2023 witnessed a remarkable rebound for Zuckerberg’s fortunes.
The impressive quarterly results not only boost Zuckerberg’s personal wealth but also promise additional benefits. Meta’s announcement of its inaugural dividend for investors, set at 50 cents per share for Class A and B common stock starting in March, is poised to significantly augment Zuckerberg’s income. Holding approximately 350 million shares, Zuckerberg stands to receive around $175 million in each quarterly payment before taxes, as per data compiled by Bloomberg.
Meta’s decision to initiate a dividend payment underscores its perspective on growth potential. While many rapidly expanding tech firms typically forgo dividends to allocate earnings towards product development or acquisitions, Meta’s move suggests a different approach. Despite substantial investments in artificial intelligence initiatives and facing regulatory hurdles that limit acquisition prospects, Meta’s pivot towards dividends signals a strategic shift in its financial strategy.
Following Meta’s restructuring, which included significant workforce reductions of approximately 21,000 employees and a sharpening of its focus, the company’s stock nearly tripled in value in 2023. The introduction of dividends and an additional $50 billion earmarked for share buybacks aim to foster investor confidence in Zuckerberg’s long-term visions for artificial intelligence and the metaverse.
Zuckerberg’s compensation for 2022 amounted to $27.1 million, inclusive of private security expenses and a nominal base salary of $1, according to filings. However, Meta has yet to disclose executive compensation for the previous year.
