Eduardo Saverin

Eduardo Saverin

Saverin at the CHINICT conference
on May 25, 2012
Born Eduardo Luiz Saverin
19 March 1982
São Paulo, Brazil
Residence Singapore
Ethnicity Jewish
Citizenship Brazil[1][2]
Alma mater Harvard University (B.S., Economics, 2006)
Known for Co-founder of Facebook
Net worth Increase US $5 billion (March 2015)[3]
Website
www.facebook.com/saverin

Eduardo Luiz Saverin[4][5][6] (Portuguese pronunciation: [eduˈaɾdu luˈis ˈsaveɾĩ]) is a Brazilian internet entrepreneur and investor.[7] Saverin is one of five co-founders of Facebook, along with Mark Zuckerberg, Dustin Moskovitz, Chris Hughes, and Andrew McCollum.[8] As of 2015, he owns 53 million Facebook shares[9] (approx. 4%) and has a net worth of $4.2 billion, according to Forbes. He also invests in early-stage startups such as Qwiki[10] and Jumio.[11]

In September 2011, he renounced his U.S. citizenship and moved to Singapore, saving an estimated $700 million in capital gains taxes; this generated some media attention and controversy.

Family and early life

Eduardo Saverin was born in São Paulo, Brazil, to a wealthy Jewish Brazilian family,[12][13][14][15] and his family later moved to Rio de Janeiro. Eduardo's father, Roberto Saverin, was an industrialist working in clothing, shipping, and real estate.[16] His mother, Paula, was a psychologist and he has two siblings.[17] His Romanian-born grandfather, Eugenio Saverin, is the founder of Tip Top, a chain of kidswear retail shops.[18] In 1993, the family emigrated to the US, settling in Miami, Florida.[19]

Education

Saverin attended Gulliver Preparatory School in Miami, and went on to Harvard University, where he was a member of the Phoenix S.K. Club as well as president of the Harvard Investment Association. While an undergraduate at Harvard, Saverin took advantage of Brazil's lax insider trading regulations and made $300,000 via strategic investments in the oil industry.[16][20][21] In 2006, Saverin graduated magna cum laude from Harvard University with a bachelor's degree in economics. He is a member of the Alpha Epsilon Pi fraternity (Eta Psi chapter of Harvard University).

Career

Facebook

During his junior year at Harvard, Saverin met fellow Harvard undergraduate, sophomore Mark Zuckerberg. Noting the lack of a dedicated social networking website for Harvard students, the two worked together to launch The Facebook in 2004. As co-founder, Saverin held the role of chief financial officer and business manager.[22]

A lawsuit filed by Facebook against Saverin and a countersuit filed by Saverin against Facebook were settled out of court. Terms of the settlement were not disclosed and the company affirmed Saverin's title as co-founder of Facebook. Saverin signed a non-disclosure contract after the settlement.[23]

Renunciation of US Citizenship

Saverin has lived in Singapore since 2009.[24][25] In September 2011, he renounced his U.S. citizenship; the citizenship change was speculated to have been an attempt to reduce the capital gains taxes Saverin would have paid after the Facebook IPO.[26][7][27] The Wall Street Journal estimated the tax savings at over $700 million.[28]

Singapore does not have a capital gains tax, while the US capital gains tax rate was 15% in 2011 and 20% starting from 2013. After losing his US citizenship, Saverin had to pay an expatriation tax equivalent to the 15% capital gains tax at the marked-to-market value of his stock holdings at the time (approx. $30/share.) In December 2014, Facebook stock reached a record high of $82/share; this capital appreciation of ~$50/share * 53 million shares[29] = $2.6 billion would never be taxed by the Singaporean government.

In response, Senator Chuck Schumer introduced the Ex-PATRIOT Act, which would have imposed additional taxes on former US citizens, but the bill died in committee.[30][31][32] Since 1996, the Reed Amendment makes former citizens inadmissible to the United States if the Attorney General determines that they gave up citizenship to avoid taxation; however, it is difficult to enforce in practice.[33] Reed Amendment author Jack Reed wrote to Secretary of Homeland Security Janet Napolitano to urge that Saverin be barred from entering to the United States, but as of 2015, he has not applied for a visa to reenter the U.S.

Depictions in media

The 2010 film The Social Network depicts the relationship between Saverin and Zuckerberg from their creation of Facebook to Saverin's legal action against Zuckerberg. Actor Andrew Garfield's portrayal of Saverin was met with critical acclaim, receiving nominations such as for the Golden Globe Award for Best Supporting Actor - Motion Picture and the BAFTA Award for Best Actor in a Supporting Role.[34]

References

  1. ↑ Kucera, Danielle; Harper, Christine; Drucker, Jesse (2012-05-12). "Facebook Co-Founder May Gain Choosing Singapore Over U.S.". Bloomberg News. Retrieved 2012-05-14. Saverin still does hold Brazilian citizenship, Goodman said.
  2. ↑ "Saverin 'has no plans to become S'pore citizen'" (PDF). Today. 2012-05-17. Retrieved 2012-05-17.
  3. ↑ "Eduardo Saverin Net Worth"
  4. ↑ Internal Revenue Service (30 April 2012). "Quarterly Publication of Individuals, Who Have Chosen to Expatriate, as Required by Section 6039G". Federal Register.
  5. ↑ Feeney, Kevin J. (2005-02-25). "Business, Casual". The Harvard Crimson. Retrieved 2012-05-11.
  6. ↑ "America's Youngest Billionaires". Forbes. October 6, 2010.
  7. ↑ 7.0 7.1 Kucera, Danielle; Vallikappen, Sanat; Harper, Christine (2012-05-11). "Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO". Bloomberg L.P. Retrieved 2012-05-11.
  8. ↑ Mezrich, Ben. The Accidental Billionaires: The Founding of Facebook: A Tale of Sex, Money, Genius and Betrayal, 2009.
  9. ↑ http://www.sec.gov/Archives/edgar/data/1326801/000118143112030861/xslF345X02/rrd345645.xml
  10. ↑ Bosker, Bianca, "Facebook Co-Founder Eduardo Saverin Invests In Qwiki"
  11. ↑ Wauters, Robin, "Exclusive: Facebook Co-Founder Eduardo Saverin Leads $6.5M Round For Jumio", TechCrunch, Thursday, March 17, 2011
  12. ↑ The Social Network: How Jewish is Facebook?, The Jewish Chronicle, Jennifer Lipman, October 14, 2010
  13. ↑ The Accidental Billionaires, Ben Mezrich, Random House Inc, 2010
  14. ↑ Zuckerberg: jovem, bilionário e... trapaceiro? Lucas Amorim, Info Exame, 20/08/2009
  15. ↑ Zuckerberg teria passado para trás amigo brasileiro Gustavo Chacra, Estadao, estadao.com.br, Atualizado: 2/10/2010
  16. ↑ 16.0 16.1 Tagiaroli, Guilherme; Ikeda, Ana (October 22, 2010). "Conheça Eduardo Saverin, o brasileiro que ajudou a fundar o Facebook". UOL (in Portuguese). Retrieved May 12, 2012.
  17. ↑ http://www.forbes.com/sites/andersonantunes/2012/05/27/eduardo-saverin-finally-opens-up-no-hard-feelings-between-me-and-mark-zuckerberg/
  18. ↑ http://www.forbes.com/sites/andersonantunes/2012/05/27/eduardo-saverin-finally-opens-up-no-hard-feelings-between-me-and-mark-zuckerberg/
  19. ↑ Eduardo Saverin, o brasileiro do facebook conta sua historia
  20. ↑ The Truth Behind Facebook's Founding is Finally Revealed
  21. ↑ "A Facebook Tale: Founder Unfriends Pals on Way Up", NPR
  22. ↑ Mezrich, The Accidental Billionaires.
  23. ↑ Carvalho dos Santos, Alexandre; Marcelo Rainho (October 2009). "A misteriosa história do brasileiro que fundou o Facebook". Superinteressante (in Portuguese) (São Paulo: Editora Abril) (270): 94–97. ISSN 0104-1789. OCLC 60743498.
  24. ↑ Miguel Helft (January 20, 2011). "Facebook Co-Founder Backs Start-Up". New York Times. Retrieved August 10, 2011.
  25. ↑ Lacy, Sarah, "Where in the World Is Eduardo Saverin? In Singapore Funding Facebook Games", TechCrunch, Thursday, October 28, 2010
  26. ↑ McCormick, Jason (11 July 2012). "5 citizens who left the U.S. to avoid paying tax". CBS News. Retrieved 17 June 2014.
  27. ↑ Worstall, Tim (May 12, 2012). "IPO Will Increase, Not Reduce, His Tax Bill". Forbes. Retrieved May 12, 2012.
  28. ↑ "So How Much Did He Really Save?". Wall Street Journal. 2012-05-18. based on financial filings, experts say, it was likely tens of millions in income tax and far more in estate tax—at least $700 million at current values and tax rates.
  29. ↑ http://www.sec.gov/Archives/edgar/data/1326801/000118143112030861/xslF345X02/rrd345645.xml
  30. ↑ Miller, Sunlen (2012-05-17). "Senators to Unveil the 'Ex-Patriot Act' to Respond to Facebook's Saverin's Tax 'Scheme'". ABC News. Retrieved 2012-05-18.
  31. ↑ With the Facebook IPO, missing Eduardo Saverin, Washington Post, May 18, 2012
  32. ↑ "Bill Summary & Status, 112th Congress (2011 - 2012): S.3205". THOMAS. 2012-05-18. Retrieved 2012-05-21.
  33. ↑ Bruce, Charles M.; Saret, Lewis; Lagonico, Stéphane; Trow, Steve (2006-03-13). "The Exit Tax — A Perfectly Bad Idea" (PDF). Tax Notes International 41 (10). Retrieved 2012-05-18.
  34. ↑ Singh, Anita (2011-01-18). "Andrew Garfield: Famous? I just don't have the time ...". The Telegraph. Retrieved 2012-05-12.

Further reading

External links

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