When it comes to money, very few individuals rival the success of Facebook’s CEO and co-founder Mark Zuckerberg. According to The Wall Street Journal, he earned close to $22 billion in 2019 alone and held a net worth of about $61 billion, making him the fifth wealthiest person in the world. It is a staggering number that many of us can hardly comprehend.
But just how exactly does Mark Zuckerberg make that much money in just one second? First and foremost, his wealth is largely attributed to his stockholdings in Facebook. As of April 2020, Zuckerberg owns more than 375 million Class B common Facebook shares, representing 22% of Facebook’s total voting power. Furthermore, The Wall Street Journal reports that Facebook’s stock prices have increased close to 26% so far this year and Zuckerberg has pocketed about $4.4 billion in the process through exercising his shares and selling them.
Besides his stockholdings in Facebook, Zuckerberg also makes money from his investments and venture capital initiatives. For example, he has made sizeable investments in real estate, such as acquiring 750 acres of land near Cody, Wyoming in December 2019, estimated to be worth $59 million. Vivek Wadhwa, a distinguished fellow at Harvard University’s Labor and Worklife Program, notes that Zuckerberg’s methods of wealth-building are wise and reflect how far he has come: “He diversifies his wealth. Mark is playing the game. He’s playing hard”.
But perhaps one of the most interesting ways that Mark Zuckerberg makes money is through his philanthropic work. Having set up his own foundation, the Chan-Zuckerberg Initiative, in 2015, Mark and his wife, Priscilla Chan, continue to donate more than $3 billion to charitable causes, placing them as the second-highest publicly recorded donors for 2019. According to Giving Pledge – an organization that encourages wealthy individuals to donate most of their wealth to charitable causes – Zuckerberg has made several billion dollar donations to date, including a $5 billion donation to the Centers for Disease Control Foundation in 2020.
All told, it is estimated that Mark Zuckerberg makes around $7 each second from his stockholdings in Facebook, and potentially double that amount when investments, venture capital and philanthropic endeavors are all taken into account. Put simply, the young entrepreneur’s money-making strategies are certainly successful.
A Look at Mark Zuckerberg’s Non-Financial Investments
As one of the wealthiest people on the planet, Mark Zuckerberg is often associated with money-making ventures, investments, stockholdings and philanthropy. However, in recent years we have seen the Facebook co-founder make significant non-financial investments too.
This includes Zuckerberg’s investment in ‘Precision Health’, a new initiative by the Chan-Zuckerberg Initiative that seeks to transform healthcare using data and technology. As part of this project, the couple has pledged to invest an additional $100 million to develop new tools, technologies, and solutions that could potentially shape the future of health care, such as artificial intelligence and robotics.
And it’s not just Precision Health that benefits from Zuckerberg’s non-financial investments. In 2018, the couple invested $30 million into Andela, a social venture that looks to equip African entrepreneurs with the relevant skills to thrive in a globalised economy. Furthermore, in 2016, the Chan-Zuckerberg Initiative supported the GO Project, a New York based program providing education and mentorship to underprivileged students in the aim of bridging the opportunity gap.
What’s more, Mark Zuckerberg and his wife Priscilla Chan were two of the founding members of the ‘Breakthrough Energy Coalition’, which supports the development and deployment of clean-energy technologies. They are also part of the ‘Giving Pledge’ organization that encourages wealthy individuals to donate to charitable causes.
So while Mark Zuckerberg remains the face of the money-making machine that is Facebook, the young CEO is much more than just a businessman. He has proven time and time again that his investments can provide for a greater good and benefit countless people in need.
The Ethics of Mark Zuckerberg’s Wealth
Given the wealth and success of Mark Zuckerberg, it is difficult not to question the ethics of his financial achievement. Specifically, what responsibility does he have when it comes to the management of his wealth?
According to Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities, “I think the answer’s obvious in the case of someone like Mark Zuckerberg. If you make billions and billions of dollars, you have a larger obligation to society than if you make thousands of dollars.” Bernstein notes that as one of the wealthiest people in the world, it is only fair that some of Zuckerberg’s money is invested in comparatively poorer nations and societies.
On the other hand, there are those who argue that it is entirely up to the wealthy individual to decide how their money is managed. As pointed out by Francis Gurry, Director-General of the World Intellectual Property Organization, “If something is made legitimately, then it is their right to manage it as they wish, within the framework of the law, and society has no automatic right to anything.”
From a legal standpoint, Zuckerberg is well within his rights to manage his wealth as he pleases. But given the size of his financial success and power, he has an undeniable moral obligation to consider how his wealth can benefit those worst off than himself.
An Unprecedented Leg Cyber Security
In 2019, Forbes reported that Mark Zuckerberg and his family had 50 security guards, an armoured vehicle and even their own private fire department at their disposal – a figure estimated to cost $7 million per year. Meanwhile, digital security company Kaspersky has likened Zuckerberg’s online cyber protection to that of the Pentagon, with a website constructed with a variety of hardware and software security components.
But why is Zuckerberg so concerned about his cyber security? One reason may have to do with his massive wealth. According to hackers, attacking Zuckerberg’s online accounts could give them access to an astonishing amount of data, plus potentially allow them to transfer large sums of money from his numerous accounts.
Furthermore, cybersecurity experts suggest that Zuckerberg may also be a target due to his powerful and influential status. That is, by successfully infiltrating and disrupt Zuckerberg’s online accounts, hackers can use their success as a form of social and political leverage to their advantage.
Clearly, Zuckerberg has been taking cyber security seriously, purchasing two printers that were updated each day with the mobile platform “CoverU” and installing facial recognition cameras at each entrance of his residence. TechCrunch, a major technology publisher, has described all of this as an ‘unprecedented’ level of online protection.
Mark Zuckerberg’s Digital Detox
After the Cambridge Analytica scandal of 2018, Zuckerberg announced that he was taking a digital detox for a month in an effort to better himself. According to CNN, the detox was an attempt for him to “focus on addressing important issues and creating new technologies to make the world better.”
The digital detox involved Zuckerberg limiting his access to digital media and online tools and instead focusing on caring for his physical, mental and spiritual well-being. To do this, he took up disciplines such as running and yoga, as well as reading books on philosophy and history. Speaking to the Harvard community on his return, Zuckerberg said that the detox had changed his entire outlook on life, “Rejuvenating my faith in the human spirit and my hope for the future.”
Overall, Mark Zuckerberg’s digital detox was an understandable and admirable attempt to better himself. Rather than solely focusing on how to make more money, it showed that he was also interested in bettering himself as a person. Through reading, physical activities, and reconnecting with friends and family, Zuckerberg had become more aware, more grounded and perhaps a better leader.
Mark Zuckerberg’s Leadership Skills
In late 2019, a survey of about 900 Facebook employees conducted by Blind, an anonymous workplace community application, found that over 73% rated Zuckerberg’s leadership skills as ‘poor’. Yet, despite this, the survey still showed that overall 92% of employees were ‘satisfied’ with their job at Facebook.
Experts argue that this might be due in part to the culture and values that Zuckerberg has put in place at the company. According to Forbes, this includes fostering a workplace culture of transparency, collaboration and belonging. While most companies focus on developing the skills of their employees, Forbes reported that at Facebook “the effort centers not just on the employees themselves, but their connection to the company ‘’.
According to Chris Morales, head of security analytics at security firm Vectra, “Mark Zuckerberg takes the time to understand what each employee’s individual story is and take a keen interest in how they interact with each other. This is the single most important way that he’s grown an organization to the level that Facebook is at today”.
Therefore, it is clear that Mark Zuckerberg’s success as a leader and CEO at Facebook is not just attributed to his money-making strategies, digital security or digital detoxes. It is largely due to his ability to connect with his employees, his focus on culture and values, and his willingness to enable everyone within the organization to succeed.
