The Spanish Javier Oliván is the number 2 of Meta since last year, only behind its CEO and founder Mark Zuckerberg. When his new position was announced, it was announced that part of his millionaire salary would be received in the form of company shares through a formula known as restricted shares.
This Saturday, the company has announced its quarterly delivery of variables to its senior executives, including Javier Olivánas stated in the financial documents registered by the company before the Securities and Exchange Commission of the United States (SEC).
The last package of shares received by Oliván has a estimated value of $4.2 millionsince it consists of 23,625 ordinary titles at a current value of $179.48.
But not all these shares go to the salary of the Spanish executive of the Facebook parent company, but rather 9,967 shares, valued at almost 1.8 million dollars, have been sold to be used to pay taxes.
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After this operation, the portfolio of shares of Javier Oliván’s Meta becomes more than 100,000 company titleswhich have a current price of about 18 million dollars.
He manages them mostly directly but also through 2 family companies: Olivan D LLC and Olivan Reinhold.
What are restricted shares (RSU) and why does Oliván receive them?
The restricted stock (RSU, for its acronym in English) are a common formula among top executives in the United States. Instead of receiving all their earnings directly in their salary, companies opt for flexible compensation programs in which part of the salary is paid in shares.
In this way, these executives can have even higher salaries without risking that this affects the liquidity of the company, since the restricted shares can be converted into regular shares and sold.
In the case of Meta, the variables in the form of shares are delivered to its top executives every quarter, and the last time was in November, when Oliván already received 1.3 million dollars in variables.
However, the company has wanted to make it clear that it is an automatic process and it is not that Oliván has sold the titles – although he could do so – but that the part that has been sold only corresponds to the payment of taxes.
“The shares were not sold by Javier Oliván, they were simply retained by Meta to cover taxesin a similar way to what we do with all RSU settlements for employees”, as a company spokesperson has assured Business Insider Spain.
In the event that Oliván decides to sell part of his stock portfolio, he is obliged to notify it since the restricted shares continue to be linked to the company and the process must be communicated to the United States SEC.