Sandberg of Facebook rakes in $26.2 million

Facebook Chief Operating Officer Sheryl Sandberg received $26.2 million in compensation last year, making her the highest paid executive at the world’s largest social-networking service for a second straight year.

Sandberg’s compensation includes $25.6 million in stock awards, salary of $321,128 and a $276,730 bonus, according to a regulatory filing yesterday. Sandberg also topped the list for 2011, when her total compensation was about $40 million.

Facebook shares lost more than half their value from the time of the May initial public offering through early September amid concern that the company would struggle to make money from the growing number of people who access the site from handheld devices. The stock began rebounding as management reassured investors that mobile-advertising efforts would pay off.

Total compensation for Chief Executive Officer Mark Zuckerberg was $1.99 million, though much of his wealth derives from owning 425.6 million shares of Facebook, according to data compiled by Bloomberg. Zuckerberg ranks No. 70 on the Bloomberg Billionaires Index.

Zuckerberg realized a gain of $2.28 billion when he exercised a previously disclosed option to receive 60 million in shares last year, according to the filing. He also sold over half of those shares in the IPO to cover taxes.

Facebook rose 2.7 percent to $26.85 at the close Friday. The stock has climbed less than 1 percent this year.

Zuckerberg received a bigger bonus in the second half of the year. That “reflected his impact on our overall performance in the period, including the growth of our user base and our significant progress in mobile product development and monetization,” according to the filing.

Sandberg’s bonus increased in the second half as well. That “reflected her leadership in growing our revenue year over year and her strategic guidance in various business matters,” the company said.

Facebook also disclosed commercial agreements with companies affiliated with its directors. Netflix, whose CEO Reed Hastings sits on the board, purchased $2.9 million in ads from Facebook in the first quarter, compared with $7.9 million in 2012, according to the filing.

The Washington Post, run by Facebook director Don Graham, bought $900,000 in ads in the period through March and $3.1 million last year, according to the filing.

Meanwhile, the company said Accel Partners’ James Breyer, an early investor in the company, won’t stand for re-election to the board.

Breyer’s departure, disclosed in a filing Friday, will be the first by a director since Facebook’s initial public offering in May. Accel Partners, a venture-capital firm based in Palo Alto, California, was an early Facebook backer, and led a $12.7 million investment in 2005.

Facebook has added two board members since the IPO, including Susan Desmond-Hellmann, chancellor of the University of California, San Francisco, in March, and COO Sandberg in June.

Bloomberg