Facebook, the world's largest social media company, filed a prospectus for an Initial Public Offering on Wednesday with the U.S. Securities and Exchange Commission. The company is seeking to raise $5 billion.
Aside from the staggering market value of the company, the filing revealed several strange details about the corporate culture and Facebook founder Mark Zuckerberg's personal security measures. The filing said the following:
Because of the high visibility of our company we have implemented a 'comprehensive security program' for Mr. Zuckerberg to address safety concerns resulting from his position as our founder, Chairman, and CEO. We require these security measures for the company's benefit because of the importance of Mr. Zuckerberg to Facebook, and we believe that the costs of this comprehensive security program are appropriate and necessary. We paid for the initial procurement, installation and maintenance of security measures for Mr. Zuckerberg's personal residence, and we pay for the annual costs of security personnel, neither of which constitutes taxable income to Mr. Zuckerberg.
In addition to the installation and maintenance of security technology at his personal residence -- none of which is taxable -- Zuckerberg is also provided with a private jet for him and his family to use. The filing specified use of the jet by stating the following:
Our compensation committee has also authorized our CEO and COO to use private aircraft for business purposes. This practice maximizes such executives' productive time and ensures their quick availability. In addition, Mr. Zuckerberg may use private aircraft for personal purposes in connection with his comprehensive security program. On certain occasions, Mr. Zuckerberg may be accompanied by family members or others when using private aircraft.
The filing specified that on occasions where Zuckerberg uses the aircraft for personal use, it will be declared as other compensation to him. In 2011, Zuckerberg received a $483,333 salary in addition to a $220,500 bonus, which pales in comparison to his compensation listed under the other category.
As part of compensation listed aside from salary and bonus, Zuckerberg received $783,529. Of that sum, approximately $692,679 was costs related to personal use of aircraft chartered in connection with his comprehensive security program and on which family and friends flew during 2011. The filing also specifies that approximately $90,850 for costs related to estate and financial planning during 2011.