In a significant development, Meta Platforms Inc., the social media giant, has announced its first-ever dividend for investors, with CEO Mark Zuckerberg poised to receive an estimated $700 million annually, according to a report by Bloomberg.
Meta has declared a quarterly cash dividend of 50 pence per share for both Class A and B common stock, starting from March. Mark Zuckerberg, with ownership of approximately 350 million shares, stands to gain around £175 million in each quarterly payout before taxes, based on data from Bloomberg.
The initiation of dividend payments by Meta marks a noteworthy move, indicating the company’s stance on its growth potential. Unlike many rapidly expanding tech companies that often reinvest earnings in new products or acquisitions and refrain from dividends, Meta’s decision carries strategic implications.
Despite ongoing significant investments in artificial intelligence (AI) initiatives, Meta has been navigating regulatory challenges that impact its acquisition strategies.
This move to introduce dividends reflects Meta’s confidence in its financial position and a commitment to returning value to its shareholders amid the evolving landscape of the tech industry.