Categorised in: Breaking Financial News
Facebook Inc. FB 0.19% employees earned a median pay package of more than $240,000 last year while Chief Executive Mark Zuckerberg’s total compensation was more than $8.8 million, according to the social-media company’s 2017 proxy.
Mr. Zuckerberg’s compensation of $8,852,366 was about 37 times higher than the median Facebook employee, according to the annual proxy filed late Friday. The company disclosed the pay ratio as part of a broader requirement of the postcrisis Dodd-Frank law that went into effect this year.
As in years past, Mr. Zuckerberg’s base salary was $1 in 2017 and he didn’t receive a bonus or any equity rewards. But the 33-year-old billionaire’s security and travel costs rose 54% to roughly $8.85 million in 2017 as he embarked on a 30-state tour of the U.S.
Facebook calculated the 37-to-1 pay ratio by comparing Mr. Zuckerberg’s compensation to that of a specific individual identified as a median worker. Facebook factored in the salary, bonus or sales commission and the value of equity awards granted to that employee as of Oct. 31, 2017. Many of Facebook’s Silicon Valley peers have not yet filed their proxy statements. Twitter Inc. last week said the annual total compensation for a median employee in 2017 was $161,860.
Facebook didn’t include contract workers or workers employed through a third party when calculating the median pay package across the company. Such employees are paid much less than full-time Facebook employees with some in the Bay Area earning about $18 to $34.75 an hour.
Facebook’s median pay is the second-highest disclosed so far by 325 companies in the S&P 500 index and it is nearly double the median pay disclosed by Morgan Stanley . So far, Incyte Corp. , a biotech firm with 1,200 employees, tops the list at $253,015. Facebook has about 25,100 employees.
—Theo Francis contributed to this article.
Corrections & Amplifications
Facebook CEO Mark Zuckerberg’s compensation is about 37 times higher than the median Facebook employee. An earlier version of this story incorrectly said the average Facebook employee.
Write to Deepa Seetharaman at Deepa.Seetharaman@wsj.com