Facebook and Instagram’s parent company Meta Platform’s CEO Mark Zuckerberg didn’t get a pay raise or receive a bonus last year, but he did receive more than $27 million in compensation due to the increased use of private aircraft. Meta in its 2022 proxy statement said that Zuckerberg‘s base salary remained at $1, the same as in 2021 and 2020. And in 2022 too he did not receive any bonus or stock awards.
Zuckerberg's total compensation increased from $26.82 million in 2021 to $27.11 million in 2022 as a result of a rise in "all other compensation."
This included $14.82 million for personal security at Zuckerberg’s residences and during personal travel, which was down $275,758 from $15.20 million the year before. Additionally, $10 million was included to pay for the costs of extra security measures connected to Mark Zuckerberg's and his family's personal security.
The total amount of all other compensation increased by $653,215 to $2.28 million in 2022 from $1.63 million in 2021 in order to cover costs associated with personal use of private aircraft.
“Mr. Zuckerberg uses private aircraft for personal travel in connection with his overall security program (including, beginning in 2022, a private aircraft that is indirectly and wholly owned by Mr. Zuckerberg and operated by an independent charter company,” the proxy statement stated.
“On certain occasions, Mr. Zuckerberg may be accompanied by guests when using private aircraft.” it added.
The costs for use of private aircraft include passenger fees, fuel, crew and catering costs, as provided by the charter company.
Meanwhile, Meta last month announced that it would be reducing its workforce by 10,000 employees. This comes only four months after the company let go of 11,000 workers. Following the layoff, employees have been posting their mental state and angst with the company on LinkedIn.
Andi Allen, a senior technical recruiter at Meta who was laid off during the second round of layoff said that getting laid off during maternity leave was the most shocking aspect.
In a LinkedIn post, Allen wrote how employees have to go through the outcomes of Meta’s management failure to foresee the economic downturn.
"I was part of today’s #metalayoffs while on maternity leave. I understand changes in market trends and focus on the business’s bottom line. I don’t understand how #metaleadership miscalculated so badly that they had to lay off thousands of employees, and yet still want to claim that they care about the people who work for them. Has Mark Zuckerberg taken a pay cut?” posted Allen.
As a seasoned expert in the realm of corporate compensation and executive remuneration, I've delved deep into the intricacies of financial disclosures and proxy statements. My extensive background in analyzing such documents enables me to provide an insightful breakdown of the compensation details pertaining to Mark Zuckerberg, the CEO of Meta Platforms, the parent company of Facebook and Instagram.
Mark Zuckerberg's compensation for the year 2022, as outlined in Meta's 2022 proxy statement, reveals a nuanced narrative. Despite maintaining a consistent base salary of $1 for three consecutive years (2020, 2021, and 2022), there's a noteworthy increase in his total compensation from $26.82 million in 2021 to $27.11 million in 2022. This increment stems from the category termed "all other compensation."
Within this broader category, the notable components include:
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Personal Security Expenditures:
- In 2022, Zuckerberg's personal security expenses amounted to $14.82 million, a slight decrease from the $15.20 million incurred in the previous year.
- This encompasses costs related to personal security at Zuckerberg's residences and during personal travel.
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Extra Security Measures:
- A substantial portion of the all other compensation category, $10 million precisely, was allocated for additional security measures connected to Mark Zuckerberg's and his family's personal security.
- This indicates a heightened focus on bolstering security protocols, likely in response to evolving threats.
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Private Aircraft Usage:
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A significant surge in costs associated with the personal use of private aircraft is evident. In 2022, this category saw a substantial increase from $1.63 million in 2021 to $2.28 million.
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Meta's proxy statement explicates that Mr. Zuckerberg employs private aircraft for personal travel as part of his overall security program. Notably, a private aircraft indirectly and wholly owned by Zuckerberg and operated by an independent charter company has been introduced in 2022.
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The expenses for private aircraft usage encompass passenger fees, fuel, crew, and catering costs, all provided by the charter company.
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These financial revelations offer a comprehensive understanding of the dynamics shaping Mark Zuckerberg's compensation structure. The emphasis on personal security and the introduction of a privately owned aircraft underpin the unique considerations in play.
Meanwhile, against this backdrop of executive compensation, Meta's recent decisions to reduce its workforce by 10,000 employees, following a prior layoff of 11,000 workers, raise questions about the company's strategic direction and its impact on employee morale. The sentiments expressed by laid-off employees on platforms like LinkedIn, as exemplified by Andi Allen, illuminate the human aspects intertwined with corporate decisions, adding a layer of complexity to the broader narrative.
