|Zuckerberg is going to have to sell at least $2 billion of his shares into the IPO: |
Ahead of I.P.O., Mark Zuckerberg’s Lawyers Expedite Disclosures
By EVELYN M. RUSLI
New York Times
March 30, 2012
Facebook’s chief executive, Mark Zuckerberg, is rushing to clear all his paperwork ahead of the social network’s highly anticipated initial public offering.
The Federal and Trade Commission disclosed in a notice on Friday that it had agreed to expedite the approval of a filing for Mr. Zuckerberg, terminating the usual 30-day waiting period. The notice relates to Mr. Zuckerberg’s stock options and his plans to exercise stock options worth about $5 billion in the offering, according to a person briefed on the matter.
This type of disclosure is not that common for I.P.O. stock sales; however, because of the value of Mr. Zuckerberg’s options, a filing was necessary.
A large portion of Mr. Zuckerberg’s bounty, roughly $2 billion, will be used to pay income taxes.
Facebook is busy squaring away all necessary filings in anticipation of its stock market debut, widely expected to take place in May. The company has asked firms that trade its shares on the secondary markets to halt transactions soon, according to people with knowledge of the matter. Facebook is likely to be keen to wrap up trading on the secondary markets to give it enough time to clear all pending transactions and clean its books ahead of the I.P.O.