A week after filing paperwork to go public, Facebook on Wednesday released a trove of additional documents that flesh out the initial filing.
Among the new details provided to the Securities and Exchange Commission: The social network pays more than $1 million in monthly rent for the 57-acre Menlo Park campus to which it recently moved from Palo Alto. By the end of the 15-year lease, the rent will approach $2 million a month. The site previously had been home to Sun Microsystems.
The amendment also lays out employment agreements with Chief Executive Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg. Zuckerberg will make $500,000 a year in base salary, and Sandberg will earn $300,000 a year, with both eligible for 45 percent bonuses and stock grants.
One San Francisco compensation attorney said he was "blown away" by the fact that Zuckerberg's and Sandberg's compensation agreements don't include outsize golden parachutes in the event either is asked to leave the company.
"These are two of the most shareholder-friendly agreements I've seen in a long time," said Matt Ward, who leads Barney & Barney's national compensation consulting practice. He also said that, given Facebook's revenues, the two executives will receive relatively modest cash compensation, although both stand to reap vast fortunes from the stock holdings.
Facebook on Wednesday also filed additional details of its special relationship with Zynga, the San Francisco social gaming company that generated 12 percent of Facebook's revenue in 2011.
Those details are identical to those Zynga included in its own IPO filings last summer, but they still had some around Silicon Valley abuzz. Facebook holds exclusive rights to distribute some of Zynga's most popular gaming titles, even as Zynga has worked to develop other platforms to loosen its dependence on Zuckerberg's company, which was the source of nearly all of Zynga's revenues last year.
Facebook, for its part, pledges in the heavily redacted documents not to develop its own gaming platform, but it continues to offer its 845 million users access to games from other companies and recently announced plans to add Rovio's wildly popular "Angry Birds." Some analysts have said that reflects Facebook's desire to become less dependent on the revenues it receives from Zynga.
While some online news outlets intimated that the SEC had forced Facebook to file the amendment, two people familiar with the situation indicated the additional filing was standard operating procedure. Companies are regularly asked to provide amendments to their S-1 filing after the initial filing, and Facebook will continue to add details until going public, including how many shares it intends to sell and at what price.
Staff writers Chris O'Brien and Mike Swift contributed to this report. Contact Peter Delevett at 408-271-3638.