Facebook parent Meta is boosting its spending on personal security for Mark Zuckerberg by $4 million this year – even as he touts a “year of efficiency” at the company following major layoffs.
Meta increased its pretax spending on Zuckerberg’s security to $14 million in 2023, up from $10 million over the last several years.
Zuckerberg is allowed to use the money to pay for “additional personnel, equipment, services, residential improvement” and other safety-related needs.
The company’s filing noted the uptick in security spending was warranted given Zuckerberg’s “position and importance to Meta” and the fact that he “has requested to only receive $1 in annual salary and does not receive any bonus payments, equity awards or other incentive compensation.”
Zuckerberg has a net worth of $62.3 billion, placing him 16th on Forbes’ list of wealthiest people in the world.
The security upgrade was revealed just days after Zuckerberg hinted at more spending cuts at Meta during a companywide “year of efficiency.” In November, Meta slashed more than 11,000 positions, or about 13% of its workforce, as Zuckerberg lamented overly aggressive hiring and difficult economic conditions.
The $14 million is only part of Meta’s spending to protect its boss. The company pours in millions of dollars more annually on security at Zuckerberg’s personal residences and to cover the cost of his private air travel.
Last year, Meta spent nearly $27 million in total on security for Zuckerberg, his wife Priscilla Chan and their children. That total included the $10 million pretax allowance.
A fuller accounting of Meta’s security costs is expected in April.
“We believe that Mr. Zuckerberg’s role puts him in a unique position: he is synonymous with Meta and, as a result, negative sentiment regarding our company is directly associated with, and often transferred to, Mr. Zuckerberg,” Meta said in a filing last year.
As part of cost-cutting efforts, Zuckerberg has teed up a “flattening” of Meta’s corporate structure by giving middle managers an ultimatum to either shift to roles as “individual contributors,” where they will no longer be responsibility for overseeing other employees, or to leave the company entirely.
The “flattening” campaign is expected to result in more company departures in the coming weeks, Bloomberg reported, citing sources familiar with the matter.
Zuckerberg addressed the plan during Meta’s second-quarter earnings call.
“We’re working on flattening our org structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers to be more productive,” Zuckerberg said.
[Written in collaboration with other media outlets with information from the following sources]
