As part of Facebook's registration with the Securities and Exchange Commission for their IPO, they have released the amended terms of Mark Zuckerberg's employment. As part of the agreement, Facebook can terminate Zuckerbeg's employment at will. Which means Zuckerberg can be fired at any given time for any given reason. However, the deal goes both ways. Zuckerberg, too can leave Facebook at any given time for any given reason. The agreement essentially says that Zuckerberg can be removed from Facebook, either by himself, or by the company at will.
Zuckerberg and Facebook have an 'at will' relationship
The 'at will' feature of Zuckerberg's employment terms can only be amended when a written agreement is approved by the Facebook board. His title, salary, job duties and benefits can be amended, however, without this process. The company's policies and procedures, too can be changed at any time. The same terms of employment apply to Facebook Chief Operating Officer, Sheryl Sandberg,
Another term of Zuckerberg's employment is that while he is employed at Facebook, he may not assist any other company in developing a similar product. However, it is not specified whether he may or may not assist another company's development of a similar product after his employment is terminated. Similar terms exist for COO Sandberg, Facebook's Chief Financial Officer, David Ebersman and Vice President (Engineering) Mike Schroepfer while they are still employed at Facebook. The agreement for all four employees reads, “assist any person or entity in competing with the company, in preparing to compete with the company or in hiring any employees or consultants of the company.”
As President and CEO of Facebook, Zuckerberg will get $5,00,000 as salary every year and up to 45 percent of that figure as bonus. Sandberg and Ebersman would get an annual base salary of $300,000 each. Schroepfer would get $275,000 as his annual base salary. All of them would receive bonuses up to 45 percent.
Publish date: February 13, 2012 11:44 am| Modified date: December 18, 2013 9:35 pm