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Facebook: CEO to take Jobs-like $1 salary, mobile a risk

updated 06:40 pm EST, Wed February 1, 2012

Facebook shows Apple influence in IPO filing

The SEC filing behind Facebook's long-expected IPO has seen company founder Mark Zuckerberg take an Apple cue in his pay. The CEO earlier this month requested that, as of the start of 2013, his base pay be cut from as much as $500,000 in 2011 to just $1, much like Apple co-creator Steve Jobs. Zuckerberg is known to have taken advice from Jobs and considered his success an aspirational goal.

Like Jobs, most of Zuckerberg's value will come from his stake in the company. At 28.4 percent ownership, the executive is estimated to be worth about $25 billion. While the strategy has been used by other CEOs, the $1 salary is usually a sign of confidence as well as an incentive to make sure the company succeeds.

Apple and other mobile-heavy companies stood to pose an ironic risk for the company. With 425 million monthly active users on mobile who weren't generating direct ad revenue, the company was aware that it was leaving potential money untapped. Too much expansion of its mobile apps and website could hurt business, Facebook said.

The site generated about 85 percent of its $3.7 billion in 2011 revenue through ads and another 12 percent just through Zynga games like FarmVille or Zynga Poker. A hope for HTML5-native games is in part to prevent Zynga from pushing too heavily into iOS and Android apps like Words With Friends, where any cut of the revenue would go to Apple or Google.



By Electronista Staff
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Comments

  1. MyRightEye

    Fresh-Faced Recruit

    Joined: Apr 2008

    +2

    Their growth is slowing

    Perfect time to milk/bilk.

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +2

    Facebook doesn't "get it"

    Re: "Too much expansion of its mobile apps and website could hurt business, Facebook said."

    Mark Zuckerberg famously said "The iPad isn't mobile."
    That explains a lot.

  1. facebook_Charlie

    Via Facebook

    Joined: Feb 2012

    -1

    Law of Large Numbers

    Market nearly penetrated. Once empty talking heads realize this. it is all over.

  1. PJL500

    Fresh-Faced Recruit

    Joined: Jun 2011

    0

    Apple and Nuance

    have a surprise for fb.

  1. Arne_Saknussemm

    Forum Regular

    Joined: Apr 2011

    +2

    Maybe?

    Big CEOs prefer a $1 salary just because they get taxed less for the company's stock investments...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Maybe

    Of course that's why they take $1. Salary for high-end executives is piddling compared to the options, stock, and other gratuities they get. A 1 million in salary will get taxed at 35%. A million in stock will get taxed at 20%.

    Or did people think Steve Jobs was just being kind to his company when he took his $1 salary?

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -2

    Re: Apple and Nuance

    have a surprise for fb.

    Yeah, sure. Just like how Ping was going to change the world too.

    Of course, I had to look up Nuance, only to find out they make the voice recognition part of Siri. So what exactly did Apple do with Siri? Integrated it into the iOS, then take all the credit?

  1. AngryFanBoy

    Fresh-Faced Recruit

    Joined: Aug 2010

    +1

    Really?

    I'm unaware of Zuckerberg having qualities of aesthetic or technological brilliance that parallel Steve Jobs. Any weight behind the comparison?

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