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Facebook amends IPO filing with new details

February 08, 2012|By Jessica Guynn
  • "Hack," Facebook's motto of moving fast and breaking things, appears on walls throughout its new 57-acre headquarters in Menlo Park, Calif.
"Hack," Facebook's motto of moving fast and breaking… (Mark Boster / Los Angeles…)

Facebook said it’s working closely with Zynga to propel growth for both companies, according to the social networking giant's amended filing for its initial public offering.

Wednesday's disclosure was similar to one that Zynga made as it prepared for its December IPO. Zynga said at the time that Facebook accounts for 90% of its sales. Zynga generated 12% of Facebook’s revenue in 2011. Facebook said that it has an agreement with Zynga to reach a series of growth targets. It signed the contract with Zynga last year.

It’s routine for companies to update their filings with the U.S. Securities and Exchange Commission.

Also included in the amended regulatory filing were the employment agreements for its two top executives, founder and Chief Executive Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg. Zuckerberg will make $500,000 and Sandberg will make $300,000 in base salary this year. Both are eligible for bonuses equal to 45% of their salaries. Zuckerberg will be paid an annual salary of $1 starting in 2013, according to the original filing.

Facebook also disclosed how much it owes for its new headquarters in Menlo Park, Calif. According to a lease Facebook filed with the U.S. Securities and Exchange Commission, Facebook will owe rent of $14.1 million for the year ending in February 2013. The rent payments increase to $22.7 million for the year ending in early 2026.

And Facebook included three forms of stock voting agreements that the company has made with investors. The agreements give Zuckerberg the right to vote their shares in most matters. Zuckerberg paid $100 to obtain the voting rights.

Facebook filed papers for an IPO a week ago. It’s expected to be one of the biggest stock market debuts in history and will make Zuckerberg one of the world’s richest people. The eight-year-old company has more than 845 million users around the world.

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-- Jessica Guynn

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