Next year Mark Zuckerberg’s base salary will receive a dramatic pay cut—going from a base salary of $600,000 to just one dollar.
Which raises the question: will he ever pay taxes again?
Zuckerberg’s salary cut is being compared to similar moves by other tech titans. Google’s Eric Schmidt and Larry Page are paid just $1 annual salaries. Steve Jobs took just $1 in salary from 1997 until his death last year. Other members of the one-percent/one-dollar club include Oracle’s Larry Ellison and Hewlett-Packard’s Meg Whitman.
Zuckerberg was paid a base salary of $500,000 in 2011 and is set to be paid a base of $600,000 this year. He got a cash bonus of $250,000 for the first half of 2011 and will likely receive a similar bonus for the second half.
Interestingly, he was alone among the top executives at Facebook who got no stock awards for 2011. The board—which is controlled by Zuckerberg himself—decided that he had enough stock to align his interests with the other shareholders. With 28.2 percent of the company, you would hope so.
Zuckerberg’s pay cut could reduce his income tax burden to nothing.
It’s possible that he might even be eligible for certain types of government aid for those with low-income—although it’s unlikely that he would collect them. READ MORE