Mark Zuckerberg will face nearly $1.67 billion in taxes when Facebook goes public and to cover those taxes the CEO is expected to sell back part of the 120 million Facebook shares he has the right to option under his stake in the company.
When all is said and done Zuckerberg is expect to be worth nearly $28.4 billion when the company goes public if it reaches the $100 billion market evaluation some analysts believe it can achieve.
Under private market trading Facebook has a current valuation of $94 billion at nearly $40 per share.
In Facebook’s IPO filing the company says of Zuckerberg’s big tax bill:
“We expect that substantially all of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur upon his exercise of an outstanding stock option to purchase 120,000,000 shares.”
For anyone curious Zuckerberg’s effective tax rate on earnings will be 35% which is far better then Mitt Romney’s current tax return which shows a 15.2% tax rate on millions earned.
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