The number of Facebook shares owned by Mark Zuckerberg is one of the most enduring puzzles of the contemporary digital world. The social network’s founder and CEO, who, according to Forbes, is worth over $76 billion, is estimated to own majority of the company’s Class B stock, a class of stock that carries 10 votes per share. Although it’s not an exact figure, estimates place Zuckerberg’s majority ownership of Facebook at 600 million Class B shares, representing over 28% of the company’s overall assets.
Though an exact figure isn’t available, analysts estimate that Zuckerberg controls about 60% of the voting power of Facebook’s board of directors. This means that Zuckerberg has the ultimate influence over any decisions made by the board, and is essentially in charge of the direction of the company.
As of April 2020, Zuckerberg and his wife Priscilla Chan co-owned just over 479 million shares in Facebook, Inc. Of that 479 million shares, more than 478 million fall in the category of Class B shares, which are 10 votes per share. This equates to billions of votes when it comes to major decisions made by Facebook’s board.
In a 2018 interview with The Verge, Zuckerberg noted that as more people have joined the company, he’s had to give up some of his ownership sharing. This has led to a “spread of power” and a “shift in decision-making” at Facebook, which the former Harvard student believes is a key part of building a great company.
Of course, his control still remains considerable: according to SEC filings, Zuckerberg owns 28.8 percent of the entire company. That share includes stock options, Class A shares, and billion-plus-vote Class B shares. Zuckerberg also sold over $1.3 billion worth of stock over the past two years, although he retains the bulk of his ownership in the company.
With his large shareholding, Zuckerberg has more power than his peers in Silicon Valley. His voting power in the company gives him considerable influence over any decisions that the board of directors makes, and since the board answers to him, he is essentially responsible for setting the direction of the company.
Though Zuckerberg’s voting power is considerable, that alone is not enough to control a global company like Facebook. As such, Zuckerberg has tried to build a management team that he trusts and that shares his vision for the company. This includes long-time confidants Sheryl Sandberg, COO, and Chris Cox, Chief Product Officer, who together make up the rest of Facebook’s leadership team.
Facebook Stock Performance
Since its IPO in 2012, Facebook’s stock price has skyrocketed. As of April 2020, the stock was trading around $200 per share, up from its IPO price of just $38. This makes Zuckerberg’s stake in the company worth tens of billions of dollars. After the stock’s initial rise, Facebook’s market capitalization was around $388 billion, making it one of the most valuable companies in the world.
Despite some bumps in the road in recent years, Facebook has largely weathered the storm, and its stock has held up relatively well over the years. Of course, some of this can be attributed to the excellence of the Facebook team, but much of it is likely also due to Zuckerberg’s control over the company. His ability to shape the future of the company is evidenced by the fact that even a small drop in stock price can quickly be remedied with a decision from the board.
From the investors’ standpoint, Zuckerberg’s influence over the board of directors could be seen as a potential risk. He is the only shareholder with enough voting power to make major decisions, and this gives him considerable power within the company. While this could provide some comfort to investors who are confident in Zuckerberg’s ability to guide the company, it also limits their ability to influence the company’s decisions.
Impact of Mark Zuckerberg On Facebook
Mark Zuckerberg’s influence on Facebook has been profound. The company’s success is largely attributed to his leadership, even though his power at the company is extremely limited compared to other tech giants.
Zuckerberg has been able to capture a vision and steer the company in a positive direction, while also incorporating the input of his executive team. His drive, dedication and vision are foundational to the company’s success, and his two Class B shares give him ultimate decision-making power.
Zuckerberg’s influence over the board of directors also impacts the company in a significant way. Facebook’s board of directors has the ability to pass resolutions that shape the future of the company and decide on major changes. With Zuckerberg as the only shareholder with voting power over these resolutions, it is up to him to decide on the direction of the company.
Additionally, owning such a large portion of the company gives Zuckerberg immense financial security: no matter what happens to Facebook, he likely will remain the company’s majority shareholder. This adds a sense of security to his position as the CEO, and gives him the ability to focus on the future of the company without worrying about what may happen to his personal finances.
Criticisms of Mark Zuckerberg’s Control
There is no denying the fact that Mark Zuckerberg has considerable control over the direction of Facebook. This has led to criticism from some, who believe that too much power in the hands of one person is never a good idea.
Critics of Zuckerberg point to situations such as the Cambridge Analytica breach, where Zuckerberg and the Facebook board were heavily criticized for allowing the company’s user data to be shared with the political consulting firm. It is argued that the breach could have been avoided if the board had been more actively involved in decision-making, rather than allowing Zuckerberg to make all of the major decisions.
Others claim that Zuckerberg’s large shareholding creates a conflict of interest, as his voting power over major decisions also gives him considerable financial gain. This can be a difficult situation for investors, who may feel like they are unable to influence the direction of the company.
Still, the overwhelming majority of investors have confidence in Zuckerberg’s ability to lead Facebook and have expressed appreciation for the company’s performance under his guidance. Whether or not his control is a good thing is ultimately up for debate, but it is clear that he has had a major impact on the company’s success.
Mark Zuckerberg As A Leader
Mark Zuckerberg is widely regarded as one of the most successful tech entrepreneurs in the world. He has been able to take a company from its foundation in 2004 to a global juggernaut with billions in revenue. His leadership style has been credited in large part for the company’s success, and he has been praised for his ability to create a culture at Facebook that fosters innovation and encourages creativity.
He is also noted for his humility and lack of ego, which is uncommon in the Silicon Valley tech world. Zuckerberg has created an environment in which decisions are made without being influenced by personal interests. This has allowed Facebook to remain focused on developing products that are good for society, rather than simply those that make money.
Finally, Zuckerberg is known for his willingness to take risks. He has pushed the boundaries at Facebook, launching products such as Oculus VR, which many experts initially viewed as unwise investments. Despite the risks, Zuckerberg has been able to make these investments pay off, bringing in billions of dollars in revenue for the company.
Conclusion
Mark Zuckerberg’s majority ownership of Facebook has been a major factor in the company’s success. His immense voting power is unparalleled among Silicon Valley executives, and his influence over major decisions has been invaluable for the company. He has taken risks, encouraged creativity, and surrounded himself with a team of trusted leaders, allowing Facebook to become one of the most successful companies in the world.
