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. Motorola Edge 70 Pro+ With 6,500mAh Battery Debuts in India at This Price
  2. Marvel's Wolverine Gets Gameplay Trailer at State of Play, Pre-Orders Go Live
  3. Xiaomi 18, 18 Pro and 18 Pro Max Specifications Leaked Ahead of Debut
  4. Lumio Launches 55-Inch Variants of Vision 9 (2026), Vision 7 (2026) in India
  5. Realme P4R 5G India Launch Date, Design and Key Specifications Revealed
  6. Xiaomi 17T Launches in India With Leica-Tuned Triple Rear Cameras
  7. Vivo X500 Pro Max Display and Battery Details Revealed in New Leak
  8. RTX Spark-Powered Laptops Could Cost a Lot More Than Regular AI PCs
  1. Amazfit Balance 3, Balance Ultra Launched With Hyrox Tools, Up to 30-Day Battery Life: Price, Features
  2. Xiaomi 17T Launched in India With Leica-Tuned Triple Rear Cameras, Dimensity 8500-Ultra SoC: Price, Specifications
  3. Xiaomi 18 Pro Max Leak Reveals Key Specifications Including Dual 200-Megapixel Rear Camera Setup
  4. Onimusha: Way of the Sword Launches September 25, Playable Demo and Pre-Orders Now Live
  5. Motorola Edge 70 Pro+ Launched in India With 6,500mAh Battery, 50-Megapixel Telephoto Camera: Price, Features
  6. Dashlane Password Manager Reveals Hackers Stole Some Encrypted Vaults Using Brute-Force Attacks
  7. Apple Doubles MacBook Neo Output as Budget Laptop Gains Popularity, Analyst Says
  8. Apple Reportedly Agrees to Hand Over India-Specific Financial Data to CCI in Years-Long Antitrust Case
  9. Apple Confirms macOS 27 Will End Support for Intel Macs Ahead of WWDC 2026
  10. Instagram Begins Warning Users Affected by Meta AI Hack That Enabled Account Takeovers
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.