Facebook’s CEO and wife to give 99 percent of shares to couple’s foundation

2 Dec 2015 | Author: | No comments yet »

Citigroup Bonus Pool for Traders, Bankers Said to Stay Flat.

San Francisco: Mark Zuckerberg will put 99 percent of his Facebook Inc shares, currently worth about $45 billion, into a new philanthropy project focussing on human potential and equality, he and his wife said in a letter addressed to their newborn daughter. Mark Zuckerberg’s pledge to give away Facebook stock worth $45 billion puts him at the forefront of a philanthropic class that has promised to donate most of their fortunes.Citigroup Inc., the third-biggest U.S. bank, plans to leave its bonus pool unchanged from 2014, joining JPMorgan Chase & Co. in a move that puts pressure on their weakened rivals in Europe, according to a person briefed on the matter. The plan, which was posted on the Facebook founder and Chief Executive`s page, and has attracted more than 360,000 `likes`, follows other high-profile billionaires such as Warren Buffett and Bill and Melinda Gates, who have pledged and set up foundations to dedicate their massive fortunes to philanthropic endeavours.

The elite list includes three men — Microsoft co-founder Bill Gates, stock market sage Warren Buffet and Oracle co-founder Larry Ellison — who are wealthier than Zuckerberg, according to Forbes magazine’s latest rankings. They also announced another gift to the world: pledged to donate 99 per cent of their Facebook shares — currently valued at $45 billion (U.S.) — to charity, starting the Chan Zuckerberg Initiative to make the world a better place.

Citigroup told senior managers Tuesday about the compensation figures, which may yet change depending on how markets perform in the year’s final month, said the person, who asked not to be identified discussing the deliberations. Thirty-one year old Zuckerberg, who will control the new initiative and remain in charge of the world`s largest online social network, said he would sell or give up to $1 billion in shares in each of the next three years.

In the post, written as a letter to their new baby, Zuckerberg and Chan began: “Your mother and I don’t yet have the words to describe the hope you give us for the future. He will keep a controlling stake in Facebook, valued at $303 billion as of Tuesday`s close, for what the company called the “foreseeable future.” Zuckerberg said he plans to remain CEO of Facebook for “many, many years to come.” The move is not Zuckerberg`s first in the world of philanthropy. When he was 26, he signed the Giving Pledge, which invites the world`s wealthiest individuals and families to commit to giving more than half of their wealth to philanthropy or charitable causes over their lifetime or in their will. “Mark and Priscilla are breaking the mould with this breathtaking commitment,” billionaire investor Warren Buffett said on Facebook. “A combination of brains, passion and resources on this scale will change the lives of millions. — Helen Walton, the wife of Wal-Mart Stores founder Sam Walton, donated her estimated fortune of $16.4 billion to a family foundation after her death in 2007. Maintaining pay is a feat on Wall Street this year — and a potential advantage in recruiting — as some of the world’s biggest investment banks shrink businesses and compensation in the face of stiffer capital rules and an extended slump in fixed-income trading.

On behalf of future generations, I thank them.” Buffett himself pledged Berkshire Hathaway Inc stock worth $31 billion at the time to Gates` foundation in 2006, which was the largest single gift at the time. The announcement stunned the charity world. “It’s incredibly impressive and an enormous commitment that really eclipses anything that we’ve seen in terms of size,” said Phil Buchanan, president of the non-profit Center for Effective Philanthropy. The greatest challenges require very long time horizons and cannot be solved by short term thinking,” wrote the new parents in the long post titled “A Letter to our Daughter.” Zuckerberg had already been praised for planning on taking two months of paternity leave after his child was born, sparking a debate in the U.S. about parental leave. Morgan Stanley is considering eliminating as much as quarter of its fixed-income trading staff, people with knowledge of the deliberations said this week. As others retreat, Citigroup Chief Executive Officer Michael Corbat has been sticking with out-of-favor trading businesses, using the industry’s withdrawal to keep a lid on costs while looking to add market share.

Pay absorbed 27 percent of revenue in the institutional clients group, which houses trading and investment-banking businesses, in the 12 months through September, Chief Financial Officer John Gerspach said this quarter. He led other prominent Silicon Valley figures in forming a group, FWD.us, that lobbied and gave donations to congressional candidates in an unsuccessful effort to promote immigration reforms. It will begin by focussing on curing disease, Internet connectivity, community building and personalized learning – or the idea that technology can help students learn at different paces. More details will be released in the months ahead as how the organization and the donations will be doled out, but already some are speculating that it might be the largest donation pledged in history. They have given several donations this year, including to public schools, initiatives to bring better wireless Internet access and to San Francisco General Hospital, where Chan works as a paediatrician.

Download the all new Zee News app for Android and iOS to stay up to date with latest headlines and news stories in Politics, Entertainment, Sports, Technology, Business and much more from India and around the world. His first major philanthropic gesture, a $100 million gift in 2010 to help the city of Newark reform its public school system, has been described as something of a fiasco. Equities traders globally will probably see an average 8 percent jump in pay this year, led by derivatives and electronic trading units, according to an Options Group report. In a statement, Facebook said the couple’s plan to transfer their shares over time won’t affect his status as controlling shareholder of the company.

As Dale Russakoff memorably reported in the New Yorker, Zuckerberg knew little to nothing about urban education policy before he met Newark Mayor Cory Booker at the Sun Valley Conference, an annual gathering for power brokers in tech, media, and finance. Compensation at the New York-based firm’s corporate and investment bank consumed 30 percent of the division’s revenue last year, a ratio that remained steady over the past five years. Chris Christie, he explained, “Newark is really just because I believe in these guys.” What followed was a fairly messy political drama, as Booker and Christie attempted to push a reform plan that involved closing low-performing public schools and expanding charter schools while transitioning teachers to a pay-for-performance system.

Regardless of its merits, the program brought on an angry public backlash that eventually helped elect one of the effort’s loudest opponents, Ras Baraka, as mayor once Booker left for the U.S. For his part Zuckerberg argued in a Facebook post this month that the gift was a success, noting that graduation rates were up and that teachers had moved on to a new contract that gave bonuses based on student results, paid for partly through his donation. Stepping back from the question of whether Newark schools are better off today than they were half a decade ago, though, the entire story should make it pretty clear that blindly plopping $100 million onto an unfamiliar city to tinker with its public institutions because you generally trust the public officials in charge is probably not a recipe for repeated or sustainable philanthropic success. Last year, they made a similarly huge $120 million dollar donation to improve Bay Area schools, but targeted the first installments at incremental changes like improved classroom technology and better teacher training. Meanwhile, his most high-profile public health move to date has been a $25 million donation to the Centers for Disease Control Foundation to fight ebola, which seems like a fairly sober and smart way to spend your philanthropic dollars.

In their joint letter (addressed, a little awkwardly, to their daughter) they talk about spreading Internet access, helping develop better personalized education technology, and building a “new type of school” better connected to public health centers and government services. (It’s a bit vague, but sounds an awful lot to me like Harlem Children’s Zone.) And, of course, they want to funnel money into medical research.

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