Josh Edelson/AFP/Getty Images
Meta founder and CEO Mark Zuckerberg speaks during Meta Connect event at Meta headquarters in Menlo Park, California on September 27, 2023.
New York
CNN
—
Mark Zuckerberg witnessed a remarkable $28 billion increase in his net worth from the start of the day until midday.
The Meta founder and CEO, who already boasts a net worth exceeding $140 billion according to Bloomberg’s billionaire index, reaped substantial gains from Meta’s stock surge following the company’s announcement of its inaugural cash dividend program.
Meta’s shares (META) soared by over 20% on Friday following the news of a quarterly dividend of $0.50 per share, set to be distributed on March 26 to shareholders of record as of February 22.
With approximately 350 million shares of the company held by Zuckerberg, as per the US Securities and Exchange Commission, his potential annual gains from the quarterly dividend payout could reach around $700 million, provided he neither sells nor acquires additional shares.
Although dividends are a source of excitement for shareholders as they reward them for holding the stock, they also face criticism for artificially inflating stock prices without directing investments towards employee welfare or business enhancement.
This surge in stock value somewhat overshadows potential repercussions for Meta following Zuckerberg and other heads of social media companies appearing before the Senate Judiciary Committee to address the risks their products pose to young individuals.
Zuckerberg was questioned about internal Meta records indicating the company’s estimate of a teen user’s lifetime value at $270, as well as Meta’s transparency regarding its exploitation of user data for monetization.
Expressing regret to the parents present, who asserted that their children had suffered due to social media, Zuckerberg stated, “I’m sorry for everything you have all been through. No one should go through the things that your families have suffered and this is why we invest so much and we are going to continue doing industry wide efforts to make sure no one has to go through the things your families have had to suffer.”
