Facebook can fire Zuckerberg 'at will'

Advertisement
By Press Trust of India | Updated: 5 June 2012 01:01 IST
Highlights
  • Facebook can terminate services of its chief Mark Zuckerberg at any time for any reason, or even without a reason, but the social networking giant's founder and CEO also enjoys similar exit rights.
Facebook can terminate services of its chief Mark Zuckerberg at any time for any reason, or even without a reason, but the social networking giant's founder and CEO also enjoys similar exit rights.

As per Facebook's employment agreement with Mr Zuckerberg, his tenure at the social networking giant would be on an "at will" basis, meaning his job can be terminated "at any time for any reason or no reason", either by him or by the company.

The company has disclosed Mr Zuckerberg's employment agreement, revised late last month, as part of an amended registration document for its upcoming IPO (Initial Public Offer) filed with the US market regulator Securities and Exchange Commission (SEC).

The global leader in social networking space is planning for a USD five billion dollar IPO, which could push Mr Zuckerberg and a few others into the league of billionaires, based on the valuation of their shareholding in the company.

While the job duties, title, compensation and benefits, as well as the company's personnel policies and procedures, might change from time to time, the 'at will' nature of Mr Zuckerberg's employment can be changed only after a written agreement approved by the Facebook board.

The employment agreement of Facebook's Chief Operating Officer (COO) Sheryl Sandberg also has an 'at-will' clause.

Ms Sandberg's agreement also provides for reimbursement of her business expenses by Facebook, although that of Mr Zuckerberg has no such clause.

One of the clauses also bars Mr Zuckerberg from creating a rival to Facebook.

As per the agreement, Mr Zuckerberg cannot "assist any person or entity in competing with the company, in preparing to compete with the company or in hiring any employees or consultants of the company."

Similar clauses apply to Chief Operating Officer (COO) Sheryl Sandberg, Chief Financial Officer (CFO) David Ebersman and Vice President (Engineering) Mike Schroepfer, for the period these people are rendering their services to Facebook.

The agreements are silent on whether these people, including Mr Zuckerberg, can help create a rival to Facebook after leaving the company.

The company said that Mr Zuckerberg, as President and CEO, would get USD 500,000 of base salary and up to 45 per cent of this amount as bonus every year.

Ms Sandberg and Mr Ebersman would get an annual base salary of USD 300,000 each, while the same for Mr Schroepfer would be USD 275,000. All the three executives would be entitled for a bonus payment of up to 45 per cent of their base earnings.

The collective base salary and bonus of the four executives stand at USD 1.99 million (about Rs 10 crore).
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Shikhar Dhawan's Battleground Season 2 Now on MX Player: All You Need to Know About This
  1. Small NASA Satellite Could Reveal How Lightning Impacts Space Weather
  2. Piece by Piece: Pharrell Williams’ LEGO Documentary Now Streaming on Netflix
  3. Ustaad Bhagat Singh OTT Release: When & Where to Watch Pawan Kalyan’s Telugu Film Online
  4. Battleground Season 2 Now on OTT: Know Where to Watch This Ultimate Fitness Reality Show Online
  5. Apne Paraye Out on OTT: Know Where to Watch This Hindi Dub of Bengali Drama Series
  6. Scientists Just Created the Largest 3D Map of the Universe Ever to Study Dark Energy
  7. Honor 600 Pro and Honor 600 Key Specifications, Features Revealed via Official Listing
  8. Ethereum NFT Platform Shuts Down After Blacklove Sale Falls Through
  9. Vivo X300 FE Storage Options Leaked Alongside Live Image With Telephoto Extender Kit
  10. Indian Smartphone Shipments Dropped to Six-Year Low in Q1 2026 as Vivo Topped Market, Nothing Led Growth: Counterpoint
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.