By Yasmeen Abutaleb
SAN FRANCISCO (Reuters) – Mark Zuckerberg
will put 99 percent of his Facebook Inc <FB.O> shares, currently
worth about $ 45 billion, into a new philanthropy project focusing on
human potential and equality, he and his wife said Tuesday in a letter
to their newborn daughter.
The plan, which was posted on the
Facebook founder and chief executive officer’s page, attracted more than
570,000 “likes,” including from singer Shakira, former California
Governor Arnold Schwarzenegger and Melinda Gates, wife of Microsoft
founder Bill Gates. The Gates and other high-profile billionaires such
as Warren Buffett have set up foundations of their own to dedicate their
massive fortunes to philanthropic endeavors.
Zuckerberg, 31, who
will control the new initiative jointly with his wife, Priscilla Chan,
while remaining 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.
Zuckerberg will keep a controlling stake in
Facebook, valued at $ 303 billion as of Tuesday’s close, for what the
company called the “foreseeable future.” According to Facebook’s most
recent proxy statement, Zuckerberg owned 4 million Class A shares and
422.3 million Class B shares, which have 10 times the voting power of A
shares. Combined he held 54 percent of the voting power of the company’s
shares.
Zuckerberg said he plans to remain CEO of Facebook for “many, many years to come.”
Zuckerberg’s
new project, the Chan Zuckerberg Initiative, is not his 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 mold with this breathtaking commitment,” Buffett said
on Facebook. “A combination of brains, passion and resources on this
scale will change the lives of millions. On behalf of future
generations, I thank them.”
Melinda Gates chimed in, “The first
word that comes to mind is: Wow. The example you’re setting today is an
inspiration to us and the world.”
Buffett himself pledged shares
of his Berkshire Hathaway Inc <BRKa.N> company that were then
worth $ 31 billion to Gates’ foundation in 2006, and at the time ranked
as the largest single gift.
A YOUNG PHILANTHROPIST
Zuckerberg
is relatively young to commit so much of his wealth. Microsoft Corp
<MSFT.O> co-founder Gates was 45 in 2000, the year he and his wife
founded the Bill and Melinda Gates Foundation. Buffett was 76 in 2006
when he committed to give away all of his Berkshire Hathaway stock to
philanthropic organizations.
About $ 350 billion is given away
each year in the United States by charities, said Stacy Palmer, editor
of the Chronicle of Philanthropy. She said Zuckerberg and his wife’s
announcement was remarkable not just because of the size of the
donation, but because of their ages.
“Our lists of the top donors
are usually dominated by people in their 70s or 80s,” she said. “This is
a message to other young people who are deciding what to do with their
great wealth.”
In welcoming the birth of his first child on his
Facebook page, Zuckerberg posted a photo of himself, his wife and their
daughter, Maxima, nicknamed Max, along with a post entitled “A letter to
our daughter.”
(http://on.fb.me/1MVnGOj)
In the 2,220-word
letter, Zuckerberg and Chan, a pediatrician, touched on issues including
health, education, Internet access and learning before announcing the
Chan Zuckerberg Initiative, which aims to “advance human potential and
promote equality.”
They plan to give away 99 percent of their
Facebook shares over their lifetimes to advance the initiative, which
was formed as a limited liability company. It will begin by focusing on
curing disease, Internet connectivity, community building and
personalized learning – the idea that technology can help students learn
at different paces.
Maxima Chan Zuckerberg was born early last
week — though Facebook did not specify her birth date — and weighed 7
lbs 8 ounces (3.4 kg) at birth. Last month, Zuckerberg announced he
would take two months of paternity leave after the birth.
Chan and
Zuckerberg have so far committed $ 1.6 billion to their philanthropy.
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 pediatrician.
Zuckerberg and Chan said they will share more details when they return from their maternity and paternity leaves.
Zuckerberg
has started his leave, a Facebook representative said, and will be
available if “absolutely needed.” Sheryl Sandberg, chief operating
officer, and Mike Schroepfer, chief technology officer, will run the
company in Zuckerberg’s absence.
(Reporting
by Yasmeen Abutaleb in San Francisco; Additional reporting by Abhirup
Roy in Bengaluru; Writing by Bernard Orr; Editing by Stephen R.
Trousdale, Bill Rigby, Lisa Shumaker and Leslie Adler)
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