How much is Facebook's CEO worth?

Mark Zuckerberg has held on to control since starting the company in his college dorm room.

By Kim Peterson May 18, 2012 7:36AM
Credit: © Brian Snyder/Reuters
Caption: Mark ZuckerbergUpdated 4:25 p.m. ET

Mark Zuckerberg has come a long way from his Harvard dorm room in 2003, when he started a silly site called FaceMash that was pulled down within days by the university.

Zuckerberg would soon move from FaceMash to the more promising Facebook and would hold on to control as the company skyrocketed in popularity. Still, he probably had no idea that Facebook would become one of the hottest IPOs in history -- or make him so rich.

Facebook priced its IPO late Thursday at $38 a share. Right out of the gate, that made 28-year-old Zuckerberg worth a cool $19.1 billion -- on paper, at least. His worth didn't change that much Friday. Facebook had a wild trading day that saw shares debut at more than $42 but fall in late trading to close at $38.23.

Zuckerberg owns 503.6 million Class B shares and will control nearly 58% of the voting power at the company. (Class B shares are different from the Class A shares being sold to the public in that each Class B share gets 10 shareholder votes.)

Other large Facebook shareholders are also raking in the dough. Dustin Moskovitz, who helped Zuckerberg start the company, is worth nearly $5.1 billion. Another founder, Eduardo Saverin -- whose relocation to tax-friendly Singapore stirred controversy -- is likely worth about $1.4 billion.

Facebook's chief operating officer, Cheryl Sandberg, is worth about $72 million, while chief financial officer David Ebersman is worth about $77 million.

All these huge numbers can start to get overwhelming. Let's put aside Zuckerberg's on-paper wealth for a minute. How much cold, hard cash did he make this week?

Zuckerberg is exercising an outstanding stock option of 60 million shares of Class B stock. He sold 30.2 million of those shares Thursday as Class A shares in the IPO for about $1.15 billion. After the subtraction of what is estimated to be a 1.1% underwriting fee, that leaves him with a bit more than $1.13 billion.

But Uncle Sam is waiting with open arms. Zuckerberg will likely need to pay taxes on the value of all 60 million shares in his stock option (a taxable value of $2.28 billion), and data researcher PrivCo estimates he'll be smacked with a 43% state and federal tax rate. Yowza.

So Zuckerberg can anticipate getting a tax bill of about $980 million, unless his well-paid accountants can find some loopholes. That stuff happens once in a while with the uber-wealthy, I'm told.

At any rate, once the IRS gets its share, Zuckerberg will have an extra $154.6 million in his pocket this week. That can buy a lot of hoodies.

Read more about the Facebook IPO

Tags: FBIPO
34Comments
May 18, 2012 9:45AM
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why should he share his wealth with anyone???? I believe a 980 million dollar tax is indeed sharing already
May 18, 2012 9:55AM
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he is shairing his wealth he gave you FACEBOOK for free!!!!!
May 18, 2012 9:49AM
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Disheartened, you want his money? go to work for him, or build a better product and compete with him.
May 18, 2012 10:02AM
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I look at it this way, he was in college, he came up with an idea and it's made him a lot of money.  He was a man after an idea, and he achieved it, good for him.  I can't condem anyone for going after a dream with pure ambition, isn't that what we try and teach our children?  Good for him! (jealousy is not an attractive feature on anyone)
May 18, 2012 10:05AM
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He earned the money, so I say let him keep it and use it as he dims fit.. God Bless
May 18, 2012 10:29AM
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I've been unemployed for over a year now but I'm not jealous of him or envy him.  Good for him!!  STOP BEING ENVIOUS OF OTHERS!!!!  I'm on my way to making my own fortune.  Not as big as his, but yet my own little fortune.
May 18, 2012 10:39AM
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If you think Zuckerburg stole the idea from the "fashion twins", then where are any of their ideas that they have generated since they got paid off . None, nada, just constantly whinning about getting ripped off and going after Zuckerburg through litigation. And Mr. Zuckerburg has moved on and built the company into what it is today.  Someone doesn't build a multi-billion dollar company( in 7 years time)by being a non-creative, dummy. Mark Zuckerburg knows what he is doing. Sorry twins, you will spend all your money on lawyers.
May 18, 2012 10:28AM
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No one knows the true story and if you're going off of "Social Media" the movie to get the facts, I would have to say that's probably not the best source to gain information.  I don't know the true story but I have no reason to doubt the success of anyone. " Innocent until proven guilty" is what this country is supposed to stand for, but I see a lot of pre-judging folks out there that would rather sit and complain about others achievements, all the while sitting there doing nothing!   

May 18, 2012 1:16PM
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Envy is an ugly shade of green my fellow trolls.  :)
May 18, 2012 10:39AM
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How did he steal someone elses Ida? And own so much money that no one else can.?
May 18, 2012 6:37PM
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Wow, the IRS makes 1 billion from this IPO. That sucks!! So if the company tanks somehow, does the IRS give Mark that money back?

 

And to think I get a rush from saving a few hundred here and there in deductions :)

May 18, 2012 1:29PM
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Don't you know that'll burn BO's  butt-----WOW, another 1 %er!. Holy cow, some people just make it in spite of the guy? 
May 18, 2012 8:53PM
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That is an unfathomable amount of money to me. And to think the government gets 86% all told, It doesn't baffle me that Eduardo left this God forsaken country.  Then again, chances are he has a large team of creative accountants and tax lawyers to help him avoid such a penalty.  Power to him.
May 18, 2012 1:24PM
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He is worth more than we posters! And that is fine, good for him. maybe he will a "do gooder" with all that $$$...time will tell

May 18, 2012 1:18PM
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He is worth all the shares he could sell. Have fun spendfing ya all initial investorsd don't be shy on passing the bag to the frenzied rich wannabes.
May 18, 2012 10:39AM
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Everyone says the wealth don't pay enough.....from what I can tell from this story the government will get about 90% and the genius will geet 10%
May 18, 2012 12:01PM
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Unless he does something good with all that money. NOTHING.
May 18, 2012 9:46AM
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I thought the wealthy didn't pay taxes?
May 18, 2012 12:32PM
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The best thing that MZ could do would be to retire, let all the other FB employees go, and give other people a chance to make some big bucks.  How much money does someone really NEED? When there is so much poverty in the world and unemployment in this country, others need the opportunities that these kids have had.   Share the wealth.

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