Meta warned investors of the risks associated with CEO Mark Zuckerberg’s “high-risk” hobbies, stating that his participation in things like extreme sports could cause serious injury or death, which in turn would be bad for business.
In its annual report, Meta outlined to shareholders the potential risk factors it may face, including losing advertising revenue, unfavorable media coverage, supply chain risks, and more.
The concern over Zuckerberg’s potentially dangerous extracurricular activities was highlighted in this section of the filing, where Meta noted that “the loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm” the business.
“Mr. Zuckerberg and certain other members of management participate in various high-risk activities, such as combat sports, extreme sports, and recreational aviation, which carry the risk of serious injury and death,” Meta wrote. “If Mr. Zuckerberg were to become unavailable for any reason, there could be a material adverse impact on our operations.”
Zuckerberg enjoys training in jiu-jitsu and mixed martial arts (MMA) and won a medal at his first jiu-jitsu tournament last May. He subsequently challenged Elon Musk to a cage fight that both billionaires teased for months but has yet to materialize.
Zuckerberg also has been learning to fly in his free time and Federal Aviation Administration records show he obtained a student pilot certificate last year.
But Zuckerberg’s love of extreme sports is not the only risk factor Meta outlined to investors.
He holds the majority of the voting power of Meta’s outstanding capital stock, the filing noted. Though he is obligated to act in good faith and the best interests of stockholders as a board member and officer, “as a stockholder, even a controlling stockholder, Mr. Zuckerberg is entitled to vote his shares in his own interests, which may not always be in the interests of our stockholders generally.”
Despite the risks highlighted by the report, Meta’s stock saw a roughly 15% jump after its annual report was filed.