The stock is organized into two classes: Class A and Class B. The document states that holders of each stock will have identical rights, but each share of Class B stock is worth 10 votes while Class A stock is worth only 1. This gives holders of Class B stock more voting control of the company.
CEO Mark Zuckerberg holds 533,801,850 shares of Class B stock, giving him 28.2 percent of total voting power before the IPO — the highest in the company. However, he also has voting proxy over additional shares, bringing his total voting power to 57 percent before the IPO.
Zuckerberg earned a base salary of $500,000 in 2011, but Facebook's compensation committee accepted his request to reduce his salary to $1 in 2013. Some executives adopt this strategy to instead receive compensation through stock options.
The filing revealed that the eight-year-old company earned $3.7 billion in revenue in 2011, $1.9 billion in 2010 and $777 million in 2009. The company's net income was $1 billion in 2011, $606 million in 2010 and $229 million in 2009.
Facebook's ticker symbol will be FB.
TALK ABOUT IT
What impact do you think Facebook's IPO, and subsequent creation of Facebook instant millionaires, will have on local housing prices? Share your opinions on Town Square on Palo Alto Online.
This story contains 243 words.
Stories older than 90 days are available only to subscribing members. Please help sustain quality local journalism by becoming a subscribing member today.
If you are already a subscriber, please log in so you can continue to enjoy unlimited access to stories and archives. Subscriptions start at $5 per month and may be cancelled at any time.