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).
 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. These Samsung Phones Will Get Price Drops Ahead of Festive Season
  2. Amazon Great Indian Festival Sale 2025: Check Early Deals on Tablets
  3. Nothing Ear 3 With 'Super Mic' Feature, Up to 45dB ANC Launched: See Price
  4. Xiaomi Announces Offers on These Products Ahead of Amazon, Flipkart Sales
  5. Samsung Galaxy S24 Ultra Deal Revealed Ahead of Amazon GIF Sale
  1. Astronomers Reveal Sudden Explosion of Small Asteroid Over France
  2. Rare ‘Crescent Sunrise’ Solar Eclipse to Grace Skies Over Antarctica and New Zealand
  3. Sun Shows Signs of Rising Activity Following Decades of Weakening, Study Finds
  4. IMAP Space Weather Mission to Lift Off Soon, NASA Confirms Broadcast Plans
  5. Microsoft's Xbox Full-Screen Experience Leaks on Other Windows Handhelds Ahead of ROG Xbox Ally Debut
  6. Cellecor Comet CBS-05 Pro Bluetooth Speaker Launched in India: Price, Features
  7. Samsung Galaxy S24 Ultra, Galaxy S24 FE, Galaxy A55 5G and More to Go on Sale With Discounts During Festive Season
  8. Coinbase Urges US DOJ Action as SEC Mulls Dropping Lawsuit Against Crypto Exchange
  9. Vivo V60 Lite 4G Design, Specifications Leaked; Tipped to Launch With Snapdragon 685 SoC, 6,500mAh Battery
  10. Nothing Ear 3 Launched With Super Mic Feature, Up to 45dB Active Noise Cancellation: Price, Features
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.