After a 12 months throughout which he didn’t let go of any Facebook inventory, Mark Zuckerberg is again to his promoting methods.
Since November 9, 2020, the Facebook cofounder and CEO, who’s price $127 billion, has unloaded shares practically each enterprise day, in line with filings to the Securities and Exchange Commission. Overall, he’s bought 9.four million shares, price $2.eight billion, over the previous eight months by means of Wednesday. About 90% of the gross sales had been made by his philanthropic and advocacy group, the Chan Zuckerberg Initiative (CZI). A smaller portion—roughly $200 million after taxes, per Forbes’ estimates—went into his personal pockets. Zuckerberg, who’s the world’s fifth richest particular person, has now winnowed his stake in Facebook to about 14%, down from 28% on the time of the corporate’s IPO.
Since Facebook went public in May 2012, Zuckerberg and CZI have bought greater than 132 million shares of the social media large, price practically $15 billion in whole. Of that, he has personally pocketed round $2.1 billion after taxes, Forbes estimates. Zuckerberg started constantly promoting Facebook inventory in 2016, the 12 months after he and his spouse Priscilla Chan established CZI. At the time, the couple penned a letter to their unborn daughter, pledging to provide 99% of their Facebook shares over their lifetimes towards areas corresponding to schooling and curing illnesses; the shares had been price $45 billion then. Zuckerberg and CZI’s gross sales reached a peak in 2018, after they offloaded $5.three billion price of shares—the overwhelming majority by means of CZI.
But Zuckerberg ceased promoting in November 2019, solely making a single donation by means of CZI of 204,700 shares price $60 million final 12 months to the Silicon Valley Community Foundation (SVCF), a Mountain View, California-based nonprofit that amongst different issues operates charitable donor-advised funds. As of 2018, Zuckerberg and Chan had donated practically $2 billion price of Facebook shares to SVCF.
A spokesperson for the Chan Zuckerberg Initiative didn’t clarify why Zuckerberg stopped after which resumed promoting one 12 months later, however stated that his gross sales are carried out by means of pre-determined plans filed to the U.S. Securities and Exchange Commission. These plans, referred to as 10b5-1 plans, permit company officers to promote inventory at common intervals and are pretty widespread amongst executives with giant inventory positions in firms.
Despite a tumultuous couple of years, which has seen Facebook come below hearth for permitting knowledge harvesting of its customers, proliferating misinformation on the platform and hate speech—which led to an promoting boycott by greater than 1,000 firms—the corporate’s inventory has continued to soar. After a federal courtroom tossed out two antitrust lawsuits filed by the Federal Trade Commission towards the tech large on June 28, shares within the Menlo Park, California agency closed at a file excessive of $355.64. Facebook inventory has since continued to commerce at comparable ranges; its present share value is up greater than 800% in comparison with when it went public 9 years in the past, when Zuckerberg was price $16.9 billion. In explicit, the inventory has been on a tear since March 2020, greater than doubling in worth over the previous 17 months.
The overwhelming majority of Zuckerberg’s Facebook share gross sales—an estimated $11 billion—have been made by the Chan Zuckerberg Initiative, primarily by means of CZI Holdings, a restricted legal responsibility firm, or CZI Foundation, the initiative’s nonprofit grantmaking arm. CZI has awarded $2.9 billion in grants and invested $150 million into for-profit ventures since 2015, in line with its web site. (The remainder of the proceeds are possible invested elsewhere by CZI in addition to getting used to fund the group, which has greater than 200 workers.) In 2016, Priscilla Chan introduced that CZI would spend $three billion over a decade in an try to treatment all illnesses. “We believe we can cure, prevent or manage all disease within our children’s lifetime,” Chan stated on the time. “It doesn’t mean that no one will get sick, but they should get sick a lot less.” It’s unclear how a lot progress CZI has made towards this formidable purpose.
Late final 12 months, Chan Zuckerberg Initiative Advocacy—CZI’s political advocacy arm—bought all 103,000 of the remaining Facebook shares it held. According to knowledge from the Center for Responsive Politics, CZI Advocacy has contributed $17.eight million to left-leaning poll initiatives, largely in California, since 2018.
Zuckerberg’s inventory gross sales over time are widespread amongst founders who took their firms public, and much like these of his fellow tech moguls. Amazon founder Jeff Bezos decreased his stake to 24% from 42% within the first 9 years after IPO—promoting about $500 million price of shares—whereas Google founders Larry Page and Sergey Brin trimmed their stakes to about 7% from 16% in the identical period of time.
Relatively talking, although, Zuckerberg has bought far much less Facebook inventory (in greenback phrases) than Bezos has bought of Amazon in whole. Since Amazon went public in 1997, Forbes calculated that Bezos has bought practically $27 billion price of Amazon shares (earlier than taxes). Of that quantity he bought $10 billion final 12 months. That makes Zuckerberg’s $2 billion price of gross sales look paltry. Today, Bezos’ Amazon stake stands at 10% after he notably relinquished 1 / 4 of his then 16% stake in 2019 to ex-wife MacKenzie Scott as a part of the most costly divorce in historical past. Still, the previous Amazon CEO, who stepped down from the place earlier this month, is the richest particular person on the earth.
Some 98% of Zuckerberg’s estimated $127 billion fortune nonetheless lies in his Facebook inventory. The the rest comes from inventory gross sales, in addition to an actual property portfolio that’s price an estimated $200 million and consists of properties in Palo Alto, California, Hawaii and Lake Tahoe. Zuckerberg spent greater than $100 million in 2014 to buy 700 acres of land on the Hawaiian island of Kauai, then added one other 600 acres this May for $53 million, in line with a report from Mansion Global.