Facebook 8-K: Zuckerberg Will Not Sell Any Shares for One Year (Filing)
In a regulatory filing today, seeking to steady its declining shares, Facebook said that its CEO and co-founder Mark Zuckerberg will not sell any of his over 500 million in shares of the social networking company, including to pay taxes related to compensation awards he receives.
In addition, the filing said that Facebook board members Marc Andreessen and Don Graham would also refrain from share sales, except to pay taxes.
Finally, the company said it would use cash or credit to pay about $1.9 billion in taxes due on the awarding of upcoming employee restricted stock units. Facebook could have sold shares to pay the bill, which might have further depressed the price of the stock. Facebook would not do anything to prevent most staffers from selling their shares.
More than 1.5 billion Facebook shares will be hitting the market over the next year, which has caused investors to shy away from the stock.
Facebook’s stock rose 1.75 percent on the news in after-hours trading, to $18.04.
Here is the full 8-K filed by Facebook: