Mark Zuckerberg’s net worth has soared by $28.1 billion following Meta’s better-than-expected quarterly results, causing its share price to rise by around 20%. This surge has elevated his net worth to $170.5 billion, his highest ever, surpassing Bill Gates to claim the fourth spot on the Bloomberg Billionaires Index.Zuckerberg’s wealth faced a significant decline in late 2022 when tech stocks dropped due to inflation and interest rate hikes, but bounced back in 2023.The positive results will also result in substantial gains for Zuckerberg through an estimated annual payout of about $700 million as part of Meta’s first-ever dividend for investors.Starting in March, Meta will be issuing a quarterly cash dividend of 50 cents per share for Class A and B common stock. With Zuckerberg holding approximately 350 million shares, he could potentially receive around $175 million in each quarterly payment before taxes, according to Bloomberg data.Mark Zuckerberg, the CEO of Meta Platforms Inc., in Washington, DC, during a Senate Judiciary Committee hearing on Wednesday, Jan. 31, 2024. There is increasing congressional scrutiny of social media platforms due to mounting evidence suggesting the detrimental effects of excessive usage and the proliferation of harmful content on young people’s mental health. Photographer: Kent Nishimura/Bloomberg.Meta’s decision to pay a dividend conveys the company’s confidence in its potential for growth. Typically, faster-growing tech companies opt to reinvest earnings into new products or make significant acquisitions rather than issue dividends. Although Meta is heavily investing in artificial intelligence initiatives, its acquisition opportunities continue to diminish due to regulatory opposition.After Meta downsized by approximately 21,000 employees and refined its priorities, the company’s stock nearly tripled in 2023. The introduction of the new dividend and an additional $50 billion in share buybacks could potentially increase investors’ patience regarding Zuckerberg’s long-term investments in artificial intelligence and the metaverse.Zuckerberg received a total compensation of $27.1 million in 2022, which included expenses for private security and a base salary of $1, according to filings. Executive compensation for last year has not been reported by Meta as of yet.A spokesperson for the company declined to provide a comment.
