Washington: Facebook can terminate services
of its chief Mark Zuckerberg at any time for any reason, or
even without a reason, but the social networking giant's
founder and CEO also enjoys similar exit rights.
As per Facebook's employment agreement with Zuckerberg,
his tenure at the social networking giant would be on an "at
will" basis, meaning his job can be terminated "at any time
for any reason or no reason", either by him or by the company.
The company has disclosed Zuckerberg's employment
agreement, revised late last month, as part of an amended
registration document for its upcoming IPO (Initial Public
Offer) filed with the US market regulator Securities and
Exchange Commission (SEC).
The global leader in social networking space is planning
for a USD five billion dollar IPO, which could push Zuckerberg
and a few others into the league of billionaires, based on the
valuation of their shareholding in the company.
While the job duties, title, compensation and benefits,
as well as the company's personnel policies and procedures,
might change from time to time, the 'at will' nature of
Zuckerberg's employment can be changed only after a written
agreement approved by the Facebook board.
The employment agreement of Facebook's Chief Operating
Officer (COO) Sheryl Sandberg also has an 'at-will' clause.
Sandberg's agreement also provides for reimbursement of
her business expenses by Facebook, although that of Zuckerberg
has no such clause.
One of the clauses also bars Zuckerberg from creating a
rival to Facebook.
As per the agreement, Zuckerberg cannot "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."
Similar clauses apply to Chief Operating Officer (COO)
Sheryl Sandberg, Chief Financial Officer (CFO) David Ebersman
and Vice President (Engineering) Mike Schroepfer, for the
period these people are rendering their services to Facebook.
The agreements are silent on whether these people,
including Zuckerberg, can help create a rival to Facebook
after leaving the company.
The company said that Zuckerberg, as President and CEO,
would get USD 500,000 of base salary and up to 45 per cent of
this amount as bonus every year.
Sandberg and Ebersman would get an annual base salary of
USD 300,000 each, while the same for Schroepfer would be USD
275,000. All the three executives would be entitled for a
bonus payment of up to 45 per cent of their base earnings.
The collective base salary and bonus of the four
executives stand at USD 1.99 million (about Rs 10 crore).
PTI
First Published: Sunday, February 12, 2012, 12:55