$100 Buys A Lot, Like Control Over Facebook

Class-B shareholders received $100 to surrender their voting control to Co-Founder and Chief Executive Officer Mark Zuckerberg.

More amusing nuggets continue to be unearthed from the trove of documents Facebook filed yesterday with the Securities and Exchange Commission for its upcoming initial public offering, including one referencing $100.

That’s what each class-B shareholder received in exchange for surrendering voting control to Co-Founder and Chief Executive Officer Mark Zuckerberg.

Is that $100 per share or $100 per holder, you ask? It looks like the latter, according to the legal agreement signed by the shareholders. The document says [unedited by us]:

This agreement is being entered into in exchange for a payment of $100 in cash from the Proxyholder to Stockholder and for other good and valuable consideration, the sufficiency of which is hereby acknowledged and agreed.

The New York TimesDealBook reported that notable investors who signed these legal agreements, which were likely formalities, included Facebook’s former President Sean Parker and venture-capital backers Digital Sky Technologies and Accel Partners.

Now before you think Zuckerberg has gone completely mad with power, not everything is rosy in his employment contract with Facebook: It says he’s limited to 21 paid days off per year.

david.cohen@adweek.com David Cohen is editor of Adweek's Social Pro Daily.
Publish date: February 9, 2012 https://dev.adweek.com/digital/100-buys-a-lot-like-control-over-facebook/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT