Facebook founder and CEO Mark Zuckerberg has revealed that he will hold on to all of his stock in the company for at least one year. The move comes in light of controversy over the social networking site's IPO offering earlier this year which offered high share prices that have only continued to drop since the initial offering.
While most Fairfax county businesses won't be face with this same level of controversy in investor relations, Facebook's struggle to reassure investors is a common issue that many businesses of all sizes face.
In this situation, Facebook's founder and CEO is using his personal holdings in the company to reassure investors that he will work to keep the value of the company growing over the next year. For many who have been concerned that the IPO offering was intentionally constructed to inflate the value of the company, this measure may help make investors feel more secure in buying and holding onto the stock while the value recovers.
The announcement didn't come through a press release, but rather through a regulatory filing that Facebook made earlier this week. These types of filings are required by publicly held companies to ensure transparency to investors, and the reaction to this one underscores the importance of accurate, timely, well thought-out filings.
Facebook also announced that the CEO will be speaking a technology conference this month, which will be his first onstage interview since the company's debut on the stock market.
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Source: Businessweek, "Facebook CEO Mark Zuckerberg won't sell shares for one year," Sept. 5, 2012.