As most of us know with the help of Facebook that Mark Zuckerberg recently announced the birth of his daughter Max. As you can see from the following post, the news was announced 12 hours ago. While most of us did not bother to read his full status, I am just going to state it here. First major announcement was the birth of his daughter Max by his wife Priscilla, and the second major announcement was, that he'll give away 99% of his shares in his lifetimes.
"We will give 99% of our Facebook shares -- currently about $45 billion -- during our lives to advance this mission. We know this is a small contribution compared to all the resources and talents of those already working on these issues. But we want to do what we can, working alongside many others. "
That is indeed a huge sum of money from which the world will benefit, but as it turns out there are a few twists. A SEC filing released spills a lot of secrets further about the give away of the shares and here's the statement.
"For this purpose, Mr. Zuckerberg has established a new entity, the Chan Zuckerberg Initiative, LLC, and he will control the voting and disposition of any shares held by such entity. He has informed us that he plans to sell or gift no more than $1 billion of Facebook stock each year for the next three years and that he intends to retain his majority voting position in our stock for the foreseeable future. Any sale of shares by Mr. Zuckerberg will be conducted pursuant to a trading plan established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)."
From the upper statement, it is almost crystal clear that Mark has created a foundation entirely under his own control, a very common thing among billionaires. Also, because of Mark not wanting to let his major stockholder position at Facebook go, he wants to maintain control of the shares which means he can sell them, not gift them.
Hope it helps! Congrats Mark!
Priscilla and I are so happy to welcome our daughter Max into this world!For her birth, we wrote a letter to her about...While that is indeed a huge announcement, there are still a few twists. The husband and wife have founded their own Chan Zuckerberg foundation, a charity. Mark wrote in a letter to his daughter Max and I quote
Posted by Mark Zuckerberg on Tuesday, December 1, 2015
"We will give 99% of our Facebook shares -- currently about $45 billion -- during our lives to advance this mission. We know this is a small contribution compared to all the resources and talents of those already working on these issues. But we want to do what we can, working alongside many others. "
That is indeed a huge sum of money from which the world will benefit, but as it turns out there are a few twists. A SEC filing released spills a lot of secrets further about the give away of the shares and here's the statement.
"For this purpose, Mr. Zuckerberg has established a new entity, the Chan Zuckerberg Initiative, LLC, and he will control the voting and disposition of any shares held by such entity. He has informed us that he plans to sell or gift no more than $1 billion of Facebook stock each year for the next three years and that he intends to retain his majority voting position in our stock for the foreseeable future. Any sale of shares by Mr. Zuckerberg will be conducted pursuant to a trading plan established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)."
From the upper statement, it is almost crystal clear that Mark has created a foundation entirely under his own control, a very common thing among billionaires. Also, because of Mark not wanting to let his major stockholder position at Facebook go, he wants to maintain control of the shares which means he can sell them, not gift them.
Hope it helps! Congrats Mark!
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