Zuckerberg Vows to Daughter He’ll Donate 99% of His Facebook Shares

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. Facebook founder and CEO Mark Zuckerberg announced today the birth of a baby girl with his wife Priscilla Chan—and in a Securities and Exchange Commission filing today, pledged to give away 99% of his stock in the social network toward charitable causes in his lifetime.

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. 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. 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 couple have given away $1.6 billion to charity to date, including to the Newark Public School System, the Centers for Disease Control and Prevention to help stop the spread of Ebola, San Francisco General Hospital and efforts to improve education in the Bay Area. 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.

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. Because they signed onto the Warren Buffet’s and Bill and Melinda Gates’ “giving pledge,” in which America’s richest promise to donate most of their money to philanthropy. 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.

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. 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. All the while, the city spent tens of millions of dollars on expensive education consultants, leading Vivian Cox Fraser, the president of the Urban League of Essex County, to memorably quip, “Everybody’s getting paid, but Raheem still can’t read.” Five years later, the argument about how effective Newark’s school reforms have been is still simmering. 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.

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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