Facebook head to be taxed at lower rate than staff

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By John Glenday, Reporter

February 8, 2012 | 1 min read

Facebook founder Mark Zuckerberg has stirred controversy across the pond after it emerged that the multi-billionaire is to be taxed at a lower rate than many of his own employees.

The disparity arises because Zuckerberg’s income is treated as capital gains, presently taxed at just 15%, whereas those who derive their income from salary typically pay around 35% tax.

Executive pay is currently a bone of consternation in the home of capitalism (as it is here) with increasing numbers of people conscious that there appears to be one rule for the top 1% of earners and another for the rest.

Facebook presently has around 3,200 employees who mostly pay the higher tax rate as they hold restricted stock units rather than regular stock options.

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