Mark Zuckerberg May Sell $1.67 Billion in Facebook Stock
The CEO will owe taxes after filing for the company's initial public offering if he exercises his option to buy 120 million shares.
Facebook's founder and CEO Mark Zuckerberg is set to file for the company's initial public offering, but though he's set to make billions off of the 120 million shares he can buy, he'll also have to pay a large sum in taxes.
Zuckerberg may sell about $1.67 billion of his Facebook Inc. stock to pay off the taxes he'll be charged in relation to gains from award options, Facebook said in its IPO prospectus, reports Bloomberg Businessweek.
The social networking guru was granted the options in 2005 and they'll expire in 2015, so he'll be selling stock to cover liabilities.
"We expect that substantially all of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes he will incur upon his exercise of an outstanding stock option to purchase 120,000,000 shares" of regular stock, the filing said.
The CEO could be worth upwards of $28 billion if the company's value ends up being valued on the high end of the $75 billion to $100 billion valuation that has been reported.
The Feb. 1 IPO filing showed Zuckerberg's compensation package for 2011 amounted to $1.49 million, including a salary of $483,333 and a $220,5000 bonus.