Meta Platforms Inc. returns with a bang, propelling Mark Zuckerberg’s fortune to new heights.
Following Meta’s quarterly results surpassing Wall Street’s projections, the Facebook co-founder’s net worth surged by an impressive $27.1 billion. This surge lifted his wealth to $169.5 billion, marking his highest net worth to date and catapulting him past Bill Gates to claim the fourth position on the Bloomberg Billionaires Index.
Zuckerberg’s wealth experienced a significant resurgence, considering it had dipped below $35 billion in late 2022 amid the tech stock downturn triggered by inflation and interest rate hikes. However, it has rebounded remarkably in 2023.
The positive results spell additional gains for Zuckerberg, as he stands to benefit from Meta’s inaugural dividend payout for investors, estimated at about $700 million annually.
Beginning in March, Meta announced a quarterly cash dividend of 50 cents per share for both Class A and B common stock. With Zuckerberg’s ownership of approximately 350 million shares, he stands to receive roughly $175 million in each quarterly disbursement before taxes, based on Bloomberg data.
Meta’s decision to initiate dividend payments signals its perspective on growth potential. While many rapidly expanding tech firms typically reinvest earnings into new products or acquisitions, Meta’s move underscores its confidence amid regulatory challenges and shrinking acquisition opportunities.
Following significant restructuring efforts that included a workforce reduction of about 21,000 employees, Meta’s stock nearly tripled in value in 2023. The introduction of dividends, coupled with an additional $50 billion allocation for share buybacks, aims to cultivate investor patience regarding Zuckerberg’s strategic investments in artificial intelligence and the metaverse.
Zuckerberg’s compensation for 2022 totaled $27.1 million, encompassing private security expenses and a nominal base salary of $1, as per filings. Executive compensation for the previous year has not yet been disclosed by Meta.
A company spokesperson declined to provide further comment on the matter.