Zuckerberg sold 768,000 shares in his first pledge
Mark Zuckerberg is a man of his words. According to the filing with the Securities and Exchange Commission (SEC), the Facebook founder has sold a total of 768,000 shares worth $95 million for charity. Trading plan 10b5-1 was used through which the sale was scheduled ahead of its original time in order to avoid insider trading.
The shares were sold by Chan Zuckerberg Foundation and CZI Holdings, two charity organizations founded by Mark and his wife Priscilla Chan. The sale of the shares will fetch more than $85 million after taxes. The move marks the start of the couple’s pledge to donate 99% of their wealth for charitable causes.
Both Mark and Chan announced their decision to donate their wealth back in December last year through a Facebook post, the same month their daughter Max was born. At the time of announcement, the net worth of their stock was around $45 billion. Since then the stock price has gone up more than 18%.
Zuckerberg at the time of announcement said that he would limit his donations to $1 billion per year for the next three years. Facebook even had to change its stock structure so that the founder does not lose control of his company. This was done to ensure the founder retains his voting rights for future.
To help Zuckerberg and his wife with the donating process, the couple launched Chan Zuckerberg foundation which helps different charities and companies in order to promote “advance human potential and promote equality.” Toward the start, the foundation will focus on improving education and health facilities for people.
The charity made its first investment in June this year when it invested in the African startup Andela. The startup trains and helps African engineers to help them find better jobs in the industry.