Is Zuckerberg paying his "fair share"?

[Savoir Faire-Demogague in NJ]

Heard this one on the news this morning:

www.foxnews.com/scitech/2012/02/02/billionaire-to-be-zuckerbergs-facebook-ipo-haul-could-top-28b/


Billionaire to be: Zuckerberg's Facebook IPO haul could top $28B


MENLO PARK, Calif. – Facebook's impending initial public offering will likely net its 27-year-old founder Mark Zuckerberg a fortune of $28 billion.

According to IPO paperwork Facebook filed Wednesday, Zuckerberg owns 28.2 percent of the soon-to-be-public company, and is its single largest shareholder.

If Facebook raises money at a high-end valuation of $100 billion dollars, Zuckerberg's stock would be worth $28 billion. On top of his stock, last year Zuckerberg was paid $1.49 million in salary, bonus and other compensation for his role as chief executive, according to the filing.

A net worth of $28 billion would have placed Zuckerberg at number nine in Forbes magazine's rich list last year, following tech luminaries Bill Gates and Larry Ellison.

But even as Zuckerberg vaults into the pantheon of the world's richest people, the young entrepreneur has already proven he doesn't intend to act like a typical billionaire.

Zuckerberg grew up in Dobbs Ferry, N.Y., the son of a dentist and psychiatrist. He graduated from high school at the elite Phillips Exeter Academy, where he honed his talents in science and the classics.

In the nearly eight years since Zuckerberg founded Facebook in his Harvard College dorm room, the entrepreneur has grown from a college sophomore into a leading voice for a new generation of technology entrepreneurs.

In the early years after Zuckerberg moved his start-up to Palo Alto, Calif., he was known for wearing Adidas flip-flops to business meetings and placing little priority on building out an advertising business for his growing social network. He handed out business cards reading, "I'm CEO, b*tch."

Today, Zuckerberg has upgraded his wardrobe to Brooks running shoes and even dons a sports coat for special meetings, like with President Barack Obama and Oprah Winfrey. And his social network has become so important to many big advertisers that they run Super Bowl ads directing customers to Facebook.

Zuckerberg has also set the tone for the lifestyles behind the latest Silicon Valley boom, eschewing the giant mansions and posh cars of the late 1990s dot-com bubble. Instead, he has lived in a modest house, and is known for his penchant for taking his dog on long walks. (He runs a Facebook page for his dog Beast, a white Hungarian Puli.)

In 2010, amidst the fall-out from the Hollywood film "The Social Network," he announced the formation of a charity called "Startup: Education" and pledged $100 million to support public schools in Newark.

In December 2010, he signed a pledge -- along with his former roommate and Facebook co-founder Dustin Moskovitz -- to give the majority of his wealth to charity.

Read more on Facebook founder Mark Zuckerberg's riches at The Wall Street Journal.

[floridayankee]

If Facebook raises money at a high-end valuation of $100 billion dollars, Zuckerberg's stock would be worth $28 billion.

He's doing pretty damned well for a 27 year old. Others could learn a lot from his example.

[Savoir Faire-Demogague in NJ]

Feb 2, 2012 9:40:00 GMT -5 @toughtimes said:

But Zuckerberg isn't paying 15% taxes on money he has earned helping other rich people invest. Zuckerberg actually had to found Facebook and risk his own money, which is more than most hedge fund managers can say. I don't see Facebook as the invention of the century, but at least it actually is an invention.

All capitla gains, sweetie, all capital gains. When he donates to charity he gets the full deduction.

[rockon]

Just waiting to see if Obama will call a press conference today to let the world know how this billionaire has screwed the middle class and demand that he send in more then his share of taxes so he can deliver it to more deserving people. Maybe he can even sign an executive order that makes this type of venture illegal in the future.

[billisonboard]

Feb 2, 2012 9:47:34 GMT -5 floridayankee said:

If Facebook raises money at a high-end valuation of $100 billion dollars, Zuckerberg's stock would be worth $28 billion.

He's doing pretty damned well for a 27 year old. Others could learn a lot from his example.

Zuckerberg grew up in Dobbs Ferry, N.Y., the son of a dentist and psychiatrist. He graduated from high school at the elite Phillips Exeter Academy, where he honed his talents in science and the classics.

The median income for a household in the village was $70,333, and the median income for a family was $93,127. Males had a median income of $65,532 versus $50,091 for females. The per capita income for the village was $35,090. About 1.8% of families and 5.6% of the population were below the poverty line, including 4.8% of those under age 18 and 7.2% of those age 65 or over. en.wikipedia.org/wiki/Dobbs_Ferry,_New_York

Tuition to Exeter for the 2009–2010 school year is $41,800 for boarding students and $32,470 for day students. In addition, each student will spend an estimated $850 for books. Mandatory fees are $720 for boarding students and $300 for day students. There are also optional fees of $1,213 and $684, respectively, for discretionary services.[18]

Exeter offers needs-based financial aid. Since 2008, students whose family income is $75,000 or less have received a free education, including tuition, room and board, travel, a laptop, and other miscellaneous expenses;[19] many families earning up to $200,000 receive partial assistance. Since 2007, financial aid has been entirely in the form of grants that do not need to be repaid.[19] From 2004–2008, Exeter admissions was effectively needs-blind, but in 2008, the school announced that the decline in its endowment forced it to suspend that policy. en.wikipedia.org/wiki/Phillips_Exeter_Academy#Tuition_and_financial_aid

Yes, there is a lot to learn from his example.

[Value Buy]

Feb 2, 2012 9:40:00 GMT -5 @toughtimes said:

But Zuckerberg isn't paying 15% taxes on money he has earned helping other rich people invest. Zuckerberg actually had to found Facebook and risk his own money, which is more than most hedge fund managers can say. I don't see Facebook as the invention of the century, but at least it actually is an invention.

So, Zuckerberg should thank the hedge fund managers that invest in the stock and give him 28 billion dollars.
Hedge fund managers help make the world go round, and sometimes make it a class five rapids, ending in a dangerous waterfall.......

[billisonboard]

Feb 2, 2012 10:08:56 GMT -5 @toughtimes said:

... If Facebook had never been invented, I don't think the world would be a poorer one. ...

I just made up a study that showed that teenagers with active Facebook accounts are 23% less likely to cause or become pregnant than those without such accounts. Increases in the number of "friends" on the account had an inverse correlation with likelihood. Those with over 250 such "friends" reported no time nor energy for actual face to face social interaction (a gateway activity for sexual behavior, the leading cause of parenthood).

[floridayankee]

Feb 2, 2012 10:00:28 GMT -5 billisonboard said:

Yes, there is a lot to learn from his example.

And? Yes, his parents did well. Did you have a point to make?

[floridayankee]

If the IPO was around $25-30, I'd be all over it. The last report I read, they're expecting closer to $100. Too much free fall room for me to gamble on.

[djAdvocate]

Feb 2, 2012 10:31:55 GMT -5 floridayankee said:

If the IPO was around $25-30, I'd be all over it. The last report I read, they're expecting closer to $100. Too much free fall room for me to gamble on.

it'll probably go higher, even though it is riding on fumes, until reality sets in.

[Value Buy]

Feb 2, 2012 10:31:55 GMT -5 floridayankee said:

If the IPO was around $25-30, I'd be all over it. The last report I read, they're expecting closer to $100. Too much free fall room for me to gamble on.

There has been so much hype on this, I believe there is money to be made at $100 ipo.
I see it spiking to $175 the first day. After that, don't know.

[billisonboard]

Feb 2, 2012 10:26:07 GMT -5 floridayankee said:

Feb 2, 2012 10:00:28 GMT -5 billisonboard said:

Yes, there is a lot to learn from his example.

And? Yes, his parents did well. Did you have a point to make?

Those who are born on third base offer little in the way of example for those born in the outfield bleachers.

[floridayankee]

Feb 2, 2012 10:36:20 GMT -5 djAdvocate said:

Feb 2, 2012 10:31:55 GMT -5 floridayankee said:

If the IPO was around $25-30, I'd be all over it. The last report I read, they're expecting closer to $100. Too much free fall room for me to gamble on.

it'll probably go higher, even though it is riding on fumes, until reality sets in.

I could be wrong, but it's probably not a stock I'd buy and hold for long. I think it will soar the first week or two simply because of the feeding frenzy the media is creating.

[floridayankee]

Feb 2, 2012 10:55:44 GMT -5 billisonboard said:

Feb 2, 2012 10:26:07 GMT -5 floridayankee said:

And? Yes, his parents did well. Did you have a point to make?

Those who are born on third base offer little in the way of example for those born in the outfield bleachers.

That's a pretty low opinion of the poor and middle class, isn't it. It's really no different than a kid starting out throwing hoops on some inner city bb court and becoming an NBA star. If the poor and middle class don't think they can learn anything from it, they won't. Sadly, to many think just like you do.

[thyme4change]

When your high school education is so high quality that it costs more than the average college degree, you are probably going to be a little better prepared for success than if you go to a poor performing school that spends more time on safety and child care than curriculum.

[floridayankee]

Feb 2, 2012 13:19:33 GMT -5 thyme4change said:

When your high school education is so high quality that it costs more than the average college degree, you are probably going to be a little better prepared for success than if you go to a poor performing school that spends more time on safety and child care than curriculum.

Are you assuming he made it big time simply because his parents were well off or might his smarts and personal drive had something to do with it?

[Deleted]

When your high school education is so high quality that it costs more than the average college degree, you are probably going to be a little better prepared for success than if you go to a poor performing school that spends more time on safety and child care than curriculum.

It better be or why else would you pay for it?

Are you assuming he made it big time simply because his parents were well off or might his smarts and personal drive had something to do with it?

Having parents that can afford to help you develop and pursue your interests is a big advantage.

[floridayankee]

Feb 2, 2012 13:39:42 GMT -5 @anne81 said:

When your high school education is so high quality that it costs more than the average college degree, you are probably going to be a little better prepared for success than if you go to a poor performing school that spends more time on safety and child care than curriculum.

It better be or why else would you pay for it?

Are you assuming he made it big time simply because his parents were well off or might his smarts and personal drive had something to do with it?

Having parents that can afford to help you develop and pursue your interests is a big advantage.

Of course it is. Does that mean people can't learn anything by his rise to success??

[thyme4change]

No, I certainly don't think his entire success is attributed to his parents financial status. However, I do know, very well, that intelligence, education and drive aren't entirely (or necessarily) qualities you are born with. Everything is a building block, and you learn so much by living with intelligent, educated, driven people. And they work with you to learn from the day you are born. And they put you in situations where your ability to learn is fostered. And the people you are surrounded by challenge you intellectually. And all of that builds up to a culmination of you being who you are. I put a vast percentage of my success in my upbringing. Born into another family, I could easily be a drug-addled stripper. I don't discount the subtleties of the advantages that I was given, and I don't discount similar (or even more) advantageous Zuckerberg was given either.

[Deleted]

Zuckerberg for president!

[rockon]

Success is more likely to be found in personal ambition and desire then in who's your daddy. Of course having access to support and a good education has to help many but there are more first generation success stories the second.

[Deleted]

Good for Zuckerberg.

The guy is at most of average intelligence and a cunning thief. And facebook is not an invention, it is entirely derivative. There were plenty of social networking sites before facebook, Friendster and Myspace are two that come to mind, and there are currently dozens, if not hundreds of other social networking sites.

He deserves credit for making facebook the choice for 800 million people, and growing, while other networks have stagnated or fallen by the wayside.

I just read that Bono, the lead singer of U2, stands to make a billion dollars on his initial investment in facebook.

I really need to expand my social circle.

[Deleted]

Zuckerberg is brilliant.
He took a simple idea and ran with it. He is a born in New York, all American success story.
He is an inspiration to the multitudes and he employs thousands of people and has shown his willingness to share the wealth with them.

Americans should be proud of him and not trying to slip their fingers in his pockets.

[Deleted]

Feb 2, 2012 14:05:34 GMT -5 Robert not Bobby said:

Good for Zuckerberg.

The guy is at most of average intelligence and a cunning thief. And facebook is not an invention, it is entirely derivative. There were plenty of social networking sites before facebook, Friendster and Myspace are two that come to mind, and there are currently dozens, if not hundreds of other social networking sites.

He deserves credit for making facebook the choice for 800 million people, and growing, while other networks have stagnated or fallen by the wayside.

I just read that Bono, the lead singer of U2, stands to make a billion dollars on his initial investment in facebook.

I really need to expand my social circle.

You mean like google+?

[floridayankee]

No, I certainly don't think his entire success is attributed to his parents financial status. However, I do know, very well, that intelligence, education and drive aren't entirely (or necessarily) qualities you are born with.

That's pretty much a given since nothing in life is absolute except, perhaps, death.

But, in Zuckerberg 's case, he was.

Zuckerberg began using computers and writing software as a child in middle school. His father taught him Atari BASIC Programming in the 1990s, and later hired software developer David Newman to tutor him privately. Newman calls him a "prodigy," adding that it was "tough to stay ahead of him." Zuckerberg also took a graduate course in the subject at Mercy College near his home while he was still in high school.He enjoyed developing computer programs, especially communication tools and games. In one such program, since his father's dental practice was operated from their home, he built a software program he called "ZuckNet," which allowed all the computers between the house and dental office to communicate by pinging each other. It is considered a "primitive" version of AOL's Instant Messenger, which came out the following year.

Success is more likely to be found in personal ambition and desire then in who's your daddy. Of course having access to support and a good education has to help many but there are more first generation success stories the second.

I agree. I'd imagine he's much more successful than 99% of his classmates that likely come from well off families as well.

[workpublic]

the too big to fail banks and their cronies are the "hedge funds" today. very little un borrowed private equity is in hedge funds these days.

time to change the rules on "hedge fund" managers.

[floridayankee]

Feb 2, 2012 14:05:34 GMT -5 Robert not Bobby said:

Good for Zuckerberg.

That's what I'm saying.

The guy is at most of average intelligence and a cunning thief.

You might want to take a couple minutes to learn a little something about him before you run with that ball. He was programming computers and took an advanced college course while still in high school.

During Zuckerberg's high school years, under the company name Intelligent Media Group, he built a music player called the Synapse Media Player that used artificial intelligence to learn the user's listening habits, which was posted to Slashdot[27] and received a rating of 3 out of 5 from PC Magazine.[28] Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he chose instead to enroll at Harvard University in September 2002.

I don't believe both Microsoft and AOL are spending a whole lot of time trying to recruit very many high schoolers of 'average intelligence'.

[Savoir Faire-Demogague in NJ]

Feb 2, 2012 14:39:04 GMT -5 floridayankee said:

No, I certainly don't think his entire success is attributed to his parents financial status. However, I do know, very well, that intelligence, education and drive aren't entirely (or necessarily) qualities you are born with.

That's pretty much a given since nothing in life is absolute except, perhaps, death.

But, in Zuckerberg 's case, he was.

Zuckerberg began using computers and writing software as a child in middle school. His father taught him Atari BASIC Programming in the 1990s, and later hired software developer David Newman to tutor him privately. Newman calls him a "prodigy," adding that it was "tough to stay ahead of him." Zuckerberg also took a graduate course in the subject at Mercy College near his home while he was still in high school.He enjoyed developing computer programs, especially communication tools and games. In one such program, since his father's dental practice was operated from their home, he built a software program he called "ZuckNet," which allowed all the computers between the house and dental office to communicate by pinging each other. It is considered a "primitive" version of AOL's Instant Messenger, which came out the following year.

Success is more likely to be found in personal ambition and desire then in who's your daddy. Of course having access to support and a good education has to help many but there are more first generation success stories the second.

I agree. I'd imagine he's much more successful than 99% of his classmates that likely come from well off families as well.

Zuckerberg is similar to Eugene Volokh, another child prodigy from the late 70s who was a software engineer in his early teens.

[Deleted]

Feb 2, 2012 14:47:47 GMT -5 floridayankee said:

Feb 2, 2012 14:05:34 GMT -5 Robert not Bobby said:

Good for Zuckerberg.

That's what I'm saying.

The guy is at most of average intelligence and a cunning thief.

You might want to take a couple minutes to learn a little something about him before you run with that ball. He was programming computers and took an advanced college course while still in high school.

During Zuckerberg's high school years, under the company name Intelligent Media Group, he built a music player called the Synapse Media Player that used artificial intelligence to learn the user's listening habits, which was posted to Slashdot[27] and received a rating of 3 out of 5 from PC Magazine.[28] Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he chose instead to enroll at Harvard University in September 2002.

I don't believe both Microsoft and AOL are spending a whole lot of time trying to recruit very many high schoolers of 'average intelligence'.

You are showing your age. For a guy of his generation he is a dime a dozen.

Maybe not here, but India is producing tens of thousands of engineers and more tech savvy guys than Zuckerberg ever was or will be. He has hired some good people...the guy who started Napster, for one.

Too many kids in this country are interested in $500 sneakers, an easy road to fame and fortune and they are basically functionally illiterate.

Every time I talk to a 14 year old, and I'm 43, in midstream and plugged in, I just cringe. And no one reads any more. On the way to becoming a country of morons, with the exception of a few.

[billisonboard]

Be ambitious. Check.
Have desire. Check.

It was suggested that "(o)thers could learn a lot from his example." So what else is there that people can learn from the Zuckerberg story as examples of how they can be wildly successful also?

_{Other than having a home life growing up that satisfied all your basic human needs without fail, a parent capable of teaching you computer programming, family resources that allow hiring a private tutor. etc, since those have been dismissed as not truly relevant to his success}