Sunday, February 12, 2012

Facebook can terminate CEO Mark Zuckerberg services 'at will'

Washington: Facebook may terminate the services of its CEO Mark Zuckerberg at any time for any reason or even for no reason, but the social networking giant Founder and CEO, also enjoys rights similar to the exit.

Read also: Facebook is not a strategy to make money from revenue Mobile | Mark Zuckerberg to keep the iron grip over the company after the IPO | Why investors do not have a lot of "likes" on Facebook

Zuckerberg Facebook, like any contract, his term would have on the social networking giant "will" basis, which means his job will be terminated "at any time for any reason or no reason," whether he or the company.

The company has disclosed Zuckerberg employment agreement, as amended late last month as part of the registration for its upcoming IPO (initial public offering) to the U.S. market regulator Securities and Exchange Commission (SEC).

The global leader in the social networking space planning $ 5000000000 dollars IPO, which could push Zuckerberg and a few others in the league of billionaires, based on evaluation of its holding company.

Although the work tasks, the title, compensation and benefits, as well as employees of the company policies and procedures may change from time to time, "arbitrary" nature of the employment Zuckerberg can be changed only after a written agreement approved by the Facebook board.

Contract of employment and Facebook Chief Operating Officer (COO) Sheryl Sandberg is also "at-will" clause.

Sandberg consent to reimbursement of his expenses by Facebook, although Zuckerberg is no such clause.

One of the clauses in the bars from creating rival Zuckerberg of Facebook.

As per the agreement, Zuckerberg does not "assist any person or entity competing for your business, preparing to compete in any company or hiring employees or consultants in the company."

Similar provisions apply to the Chief Operating Officer (COO) Sheryl Sandberg, Chief Financial Officer (CFO), David Ebersman and Vice President (Engineering), Mike Schroepfer, the period of these people make their services on Facebook.

Contracts are silent on whether these people, including Zuckerberg, Facebook can help to create a rival leaving the company.

The company said that Zuckerberg, the president and chief executive, would get $ 500,000 base salary to 45 percent of the amount of bonus each year.

Sandberg and Ebersman get annual salary of $ 300,000 each, while the same Schroepfer would be $ 275,000. All three executives would be entitled to a bonus payment of up to 45 percent of its revenue base.

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