Finally Facebook Inc(NASDAQ:FB) founder Mark Zuckerberg has stepped in to restore investor confidence and instil some much-needed optimism among employees
Late Tuesday, Chief Executive Zuckerberg pledged that he would not sell shares in the company for more than a year.
The moves, announced in a regulatory filing, effectively reduce the amount of Facebook stock that is liquid in the market. Expiry of locked-in shares last month have resulted in a deluge of shares of the company in the stock markets as early stage large insider investors have been selling their holdings. More shares are expected to be released in the market.
The social networking site said two of its directors, Marc Andreessen and Donald Graham, also have no plans to sell their personal stock in the company, beyond the amount needed to cover their tax liabilities.
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The company also detailed how it will issue restricted stock units to staff in October. The company plans to withhold 45 percent of the value of those shares to cover tax liabilities. Doing so will effectively remove 101 million shares outstanding in the company for accounting purposes. The company also moved the lockup date for some employees' stock to Oct. 29 from Nov. 14.
In another move the reclusive Facebook founder will sit down next week for a rare onstage interview at a technology conference in San Francisco, his first public appearance since his company's disastrous stock market debut.
Investors have been clamouring to hear Zuckerberg's take on his company's challenges and the stock's collapse, yet he has stayed out of the public eye, even amid calls for his resignation.
Facebook's stock price dropped to a new low Tuesday, closing down 1.8 percent to close at $17.73. Shares of the company rose over 2% in after hours session.