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Early investors in Facebook signed away their voting rights to Mark Zuckerberg in exchange for $100 cash, reports The New York Times.This quirky arrangement was described in part of the documents that Facebook filed for its IPO:
“This agreement is being entered into in exchange for a payment of $100 in cash from the Proxyholder to Stockholder and for other good and valuable consideration, the sufficiency of which is hereby acknowledged and agreed.”
Those affected by this agreement include Sean Parker, the company’s first president, and Accel Partners, one of Facebook’s venture capital backers.
Zuckerberg owns 28.4% of the company, but with this play he retains voting control on 57.1% of Class B shares.
The New York Times wraps it up best: “While the $100 payments were likely a formality, they provide yet another amusing symbol of Mr. Zuckerberg’s sway at Facebook and how early investors have subscribed to the belief that Facebook is indeed ‘a Mark Zuckerberg production.'”