Meanwhile, Facebook executives are not exactly sending a reassuring message to investors by unloading their shares at a rapid clip.
Last summer, after Zuckerberg’s plan to create another class of stock to solidify his control of the company foundered, he announced he’d begin selling off up to 75 million shares (about 18 percent of his stake), worth nearly $13 billion, by mid-2019. The money will support the Chan Zuckerberg Initiative (CZI), his various other company devoted to Great works.
Those sales are well underway. In February he sold nearly $500 million worth of shares, along with he’s on pace to sell of which much or more in March. By way of comparison, he sold only about $1.6 billion worth to fund CZI over the last two years.
Why right now? Zuckerberg will be 33 years old — far by retirement. What exactly will be CZI doing of which requires such a massive investment? Amazon CEO Jeff Bezos will be building rocket ships to explore space with his various other company Blue Origin, along with he only needs to spend $1 billion a year.
various other top executives are also selling in massive amounts. Jan Koum, who founded the messaging app WhatsApp, which Facebook bought in 2014 for $19 billion, sold $2.8 billion worth of shares last year — more than any exec at any major tech company. (Amazon CEO Jeff Bezos sold $2 billion of stock last year, in part to fund Blue Origin. Nobody else will be close.)
Sandberg sold over $300 million, which pales in comparison to her colleagues although will be still unusually large among officers of top tech companies.
Facebook stock will be up over 80 percent within the last 12 months. Perhaps these execs are just taking gains, as any normal employee with stock compensation would likely be advised to do.
although these are not normal employees. They’re the leaders of the company.
various other leaders keep skin within the game during difficult times — think of how Microsoft CEO Steve Ballmer held on to most of his stock throughout his tenure, even as Microsoft faced expensive antitrust lawsuits along with growing competitive threats, or how Twitter CEO Jack Dorsey bought shares in 2017 when many investors had written the company off.
Facebook will be facing real problems. Instead of giving answers to those problems, top execs are selling, spinning along with staying silent.
of which’s not leadership. along with when leaders fail to lead, companies fail.