Meta reported strong fourth-quarter earnings on Thursday and announced a quarterly dividend of 50 cents per share and a $50 billion stock repurchase program. It's the first time in the company's history that it's paying a dividend, and CEO Mark Zuckerberg will receive about $700 million in annual dividends. Zuckerberg currently holds about 350 million Meta shares, which means he earns about $175 million in pre-tax dividend income each quarter.
Meta's move to pay a dividend sends a signal about the company's view of its growth potential. Typically, fast-growing technology companies avoid paying dividends in favor of using the proceeds to develop new products or make expensive acquisitions. Although Meta has invested heavily in artificial intelligence projects, its acquisition prospects are waning due to regulatory opposition.
Meta's stock price nearly tripled in 2023 after it laid off about 21,000 people and narrowed its priorities. A new dividend and an additional $50 billion in stock buybacks may win more patience from investors, allowing Zuckerberg to make a long-term bet on artificial intelligence and the Metaverse.
Zuckerberg's total compensation in 2022 is $27.1 million, which includes private security expenses and a base salary of $1. Meta has not released executive compensation for last year.