Zuckerberg's wealth, which dropped below $35 billion in late 2022 amid a tech stock decline due to inflation and interest rate concerns, has made a significant recovery in 2023.
Following Meta's quarterly results surpassing Wall Street's expectations and leading to a 20% surge in its shares, Mark Zuckerberg's net worth increased by $28.1 billion. Currently valued at $170.5 billion, this makes him the wealthiest he has ever been, surpassing Bill Gates to claim the fourth spot on the Bloomberg Billionaires Index.
Zuckerberg's wealth experienced a significant rebound in 2023 after dipping below $35 billion in late 2022 amidst the collapse of tech stocks due to inflation and interest rate hikes.
The positive results will also have additional advantages for Zuckerberg, as he is poised to receive an annual payout of approximately $700 million from the social media giant's inaugural dividend for investors.
Meta disclosed a quarterly cash dividend of 50 cents per share for both Class A and B common stock starting in March. With Zuckerberg possessing around 350 million shares, he would receive roughly $175 million in each quarterly disbursement before accounting for taxes, as per Bloomberg's compiled data.
By opting to distribute dividends, Meta communicates its perspective on growth potential. Typically, rapidly expanding tech firms forego dividends, choosing instead to reinvest earnings into product development or high-cost acquisitions. Although Meta is making substantial investments in artificial intelligence initiatives, regulatory obstacles are limiting its possibilities for acquisitions.
Following the termination of approximately 21,000 employees and a refinement of its focus, Meta's stock nearly tripled in 2023. The introduction of a new dividend and an extra $50 billion allocated for share buybacks might garner increased patience from investors regarding Zuckerberg's enduring investments in artificial intelligence and the metaverse.
In 2022, Zuckerberg's total compensation amounted to $27.1 million, encompassing private security expenses and a nominal base salary of $1, as per filings. Meta has not yet disclosed executive compensation details for the same year.
