Facebook can terminate services of its chief Mark Zuckerberg at any time for any reason, or even without a reason, but the social networking giant’s founder and CEO also enjoys similar exit rights.
As per Facebook’s employment agreement with Zuckerberg, his tenure at the social networking giant would be on an ‘at will’ basis, meaning his job can be terminated ‘at any time for any reason or no reason’, either by him or by the company.
The company has disclosed Zuckerberg’s employment agreement, revised late last month, as part of an amended registration document for its upcoming IPO (Initial Public Offer) filed with the US market regulator Securities and Exchange Commission (SEC).
The global leader in social networking space is planning for a USD five billion dollar IPO, which could push Zuckerberg and a few others into the league of billionaires, based on the valuation of their shareholding in the company.
While the job duties, title, compensation and benefits, as well as the company’s personnel policies and procedures, might change from time to time, the ‘at will’ nature of Zuckerberg’s employment can be changed only after a written agreement approved by the Facebook board.
The employment agreement of Facebook’s Chief Operating Officer (COO) Sheryl Sandberg also has an ‘at-will’ clause.
Sandberg’s agreement also provides for reimbursement of her business expenses by Facebook, although that of Zuckerberg has no such clause.
One of the clauses also bars Zuckerberg from creating a rival to Facebook.
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