But it's a little surprising that Zuckerberg's decision to exercise stock options worth an estimated $3.3 billion is generating grumbling. They're called "options." And they were his to exercise.
True, he reportedly exhausted his supply of options after exercising 60 million of them in 2013.
But that doesn't mean he lacks a significant stake in the company or motivation to make it perform. He still holds more than 420 million Facebook shares worth a total of roughly $26 billion.
Selling stock is no different from what other corporate leaders have done. Facebook shares have more than doubled in the past 12 months. And no one's talking about Zuckerberg and his wife's donation of 18 million Facebook shares valued at nearly $1 billion to a nonprofit. He can't win.
What critics really don't like is that Facebook doesn't "follow the rules."
On the heels of Zuckerberg's $19 billion deal for WhatsApp, Dennis Berman of the The Wall Street Journal wrote: "There's been so little precedent for business at this scale that we have a hard time simply comprehending all of this."
But that's not Facebook's problem.
But some observers have had a difficult time embracing anything Zuckerberg has tried to do over the past two years, including last week's $2 billion dollar acquisition of Oculus. As with the WhatsApp deal before it, some analysts complained that Facebook was paying too much. Talking points ventured to how Facebook's "ambitions had become scattered." The deal was seen as yet another "head-scratching" event.
But in Facebook's fourth-quarter conference call, Zuckerberg laid out clearly what the company's long-term strategy was. It hinted at these sorts of deals. Analysts just weren't paying attention. During the January quarter's conference call, Zuckerberg said:
"One theme that should be clear from our work on products like Messenger, Groups and Instagram is that our vision for Facebook is to create a set of products that help you share any kind of content you want."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV