With more than 1.66 billion daily active users, Facebook Inc. (NASDAQ: FB) is the most popular social networking site worldwide and also one of the most rewarding technology sector stocks for investors, generating a return of more than 300% since its initial public offering (not accounting for reinvested dividends), and boasts a market cap of roughly $600 billion as of February 2020. It was the fastest company in history to reach a market capitalization value of $250 billion, achieving that mark within just three years of its market debut. Facebook is a component of the NASDAQ 100 Index and the Standard & Poor's 500 Index.
Facebook announced its Q4 2019 earnings on January 29, 2020. The social networking company reported $21.08 billion in revenue for the quarter, a 26% increase over the same period last year. Here are the company's six largest individual shareholders.
Facebook stock is widely held by large institutional investors, mutual funds, and ETFs. The individual Facebook shareholders with the largest amount of Facebook stock are all present or former key figures at Facebook. Class A shareholders have one vote for each share while those with Class B shares have 10 votes for each share held.
- Facebook founder Mark Zuckerberg is the company's largest shareholder, with 12.18 million Class A shares and 365.72 million Class B shares.
- Co-founder Eduardo Saverin is the second-biggest shareholder, with 7.5 million Class A shares and 45.9 million Class B shares.
- Dustin Moskovitz is the third-biggest Facebook shareholder, with 32.6 million Class B shares and no Class A shares.
- Jan Koum, the WhatsApp founder and former CEO—and former Facebook board member—reportedly still holds 5.57 million Facebook Class A shares, as of a 2018 SEC filing.
- Facebook chief operating officer (COO) Sheryl Sandberg holds 1.35 million Class A shares and 770,000 Class B shares.
- Facebook's chief technology officer, Michael Schroepfer, has a total of 960,583 Class A shares and no Class B shares.
The founder and "face" of Facebook indirectly held around 12.18 million Class A Facebook shares through a series of funds, and a whopping 365.72 million Class B shares as of April 2019. Control over nearly 80.9% of the Class B shares gives Zuckerberg 53% voting rights in the company. However, Zuckerberg also has voting rights over co-founder Dustin Moskovitz's Class B shares, giving him effectively 57.7% voting rights in the company.
According to SEC filings, Zuckerberg sold 10.1 million shares in 2019 at an average price of $184.57, generating proceeds of $1.86 billion. This is down significantly from the 28.9 million shares he sold in 2018, which generated $5.3 billion in proceeds.
Mark Zuckerberg started Facebook in his Harvard dorm room and has become one of the most famous businessmen in the world. Zuckerberg and Facebook have come under fire in the Cambridge Analytica scandal where it was revealed that the latter accessed user data and then targeted certain political advertisements to those users. Zuckerberg—in a written statement before the House of Representatives—admitted that the company had not done enough to protect its users.
Zuckerberg's net worth was estimated at $77.8 billion as of February 2020.
Over 1.66 billion
The number of daily active users of Facebook, as of the fourth quarter of 2019.
Brazilian entrepreneur and Facebook investor Eduardo Saverin was also a founding member of the social network. Saverin held 7.5 million Class A shares of Facebook, along with 45.9 million Class B shares that account for 6.7% voting power in the company, as of April 2019. Saverin, once responsible for Facebook's business segment, was edged out of the company with his stake diluted by Zuckerberg in 2005. The spat resulted in a lawsuit filed by Saverin that was settled out of court. Saverin also made headlines when he renounced his U.S. citizenship ahead of the Facebook IPO, a move that would have helped him save on taxes.
His net worth was $11.8 billion as of February 2020.
Another Facebook founder, Dustin Moskovitz, held 32.6 million Class B shares as of April 2019. Interestingly, he has a voting agreement on these shares in favor of Zuckerberg that the proxy counts among the latter's voting rights. According to the company's SEC filing, Moskovitz did not respond to a request to disclose his ownership of Class A shares and accounts for no such shares in his name based on information available. Moskovitz left Facebook in 2008 and went on to co-found Asana, a workflow management software company. In 2010, at the age of 26, Moskovitz was among Forbes Magazine's youngest American billionaires, with a net worth estimated at $1.4 billion at the time.
His net worth was $12.9 billion as of February 2020.
Co-founder of the world's biggest mobile messaging service, Jan Koum held 5.57 million Facebook Class A shares, according to his last filing with the SEC in May 2018. That's down from the 14.2 million shares he held as of Facebook's April 2018 proxy statement, reflecting published reports that Koum was disposing of billions of dollars worth of Facebook shares as he separated from the company.
Koum's story is a true rags-to-riches tale. An immigrant from Ukraine, he survived on his mother's disability income and food stamps until he secured a job as a security and infrastructure engineer at Yahoo Inc. After working under the tutelage of Yahoo co-founder David Filo for nine years, Koum left the company in 2007, and, in 2009, he designed and launched the WhatsApp mobile messaging service.
In February 2014, Facebook announced it was acquiring WhatsApp for $16 billion, of which $4 billion would be paid in cash and $12 billion in Facebook stock. WhatsApp's founders and employees would received an additional $3 billion vesting over four years. The deal was worth $21.8 billion by the time it closed in October 2014, with Koum obtaining a seat on Facebook's board of directors. In April 2018, Koum announced on his Facebook profile that he was stepping away from his role, saying it is "time for me to move on."
His net worth was $10.4 billion as of February 2020.
Sheryl Sandberg indirectly held 1.35 million Class A shares through a trust and another 770,000 Class B shares as of April 2019. Sandberg has held the position of chief operating officer (COO) at Facebook since 2008. Prior to joining the company, she served as chief of staff to U.S. Treasury Department Secretary Larry Summers and vice president of global online sales and operations for Google. She worked as an economist for the World Bank, earned an MBA from Harvard Business School, and wrote Lean In: Women, Work, and the Will to Lead.
Sandberg's net worth was $1.7 billion as of February 2020.
Facebook's chief technology officer, Michael Schroepfer, comes in as Facebook's sixth-largest shareholder. As of April 2019, Schroepfer held 960,583 Class A shares and no Class B shares. A year earlier, Schroepfer held 990,725 Class shares and 716,987 B shares. Schroepfer came aboard at Facebook in 2008 as vice president of engineering. Since 2013, he has been the company’s chief technology officer, tasked with managing and developing the vast technological infrastructure that supports the heavy traffic of the Facebook site. Schroepfer earned a bachelor’s and a master’s degree in computer science at Stanford University. His Facebook shares are worth roughly $200 million as of February 2020.