In the early days of Facebook, founder Mark Zuckerberg hired graffiti artist David Choe to paint murals in Facebook’s first office space in 2005. As payment, Zuckerberg gave Choe the option to choose between $60,000 in cash or Facebook stock options. Choe chose to receive stock options instead of cash, a decision that would later net him hundreds of millions of dollars.
Who is David Choe?
David Choe is an American painter, muralist, graphic novelist, and graffiti artist. He was born in 1976 in Los Angeles, California to Korean immigrant parents. From an early age, Choe displayed artistic talents and attended the California College of the Arts before dropping out after two years. He began his career painting graffiti and murals around Los Angeles before expanding to show his work in galleries nationally and internationally. Some of his most famous murals are splashed across buildings in cities like New York, San Francisco, and Los Angeles.
Choe first gained wider recognition after being featured in magazines like Juxtapoz and Rolling Stone. He went on to publish graphic novels and be featured on television programs. His provocative art style combines contemporary urban themes with traditional Eastern influences. He is known for using a wide range of mediums for his artwork including acrylics, oils, watercolors, and spray paint.
How did Choe meet Mark Zuckerberg?
In 2005, Mark Zuckerberg had just launched Facebook as a social network for college students at Harvard University. As membership quickly expanded to other elite universities, Zuckerberg needed office space for his rapidly growing start-up. He leased a house in Palo Alto, California to serve as the new headquarters for Facebook.
At the time, Zuckerberg had very little funding to decorate the new office space. His mentor Sean Parker knew graffiti artist David Choe and thought he would be perfect for making the office feel youthful and hip. Parker introduced Choe and Zuckerberg over email to discuss having Choe paint some murals in the Facebook office.
When they met in person, the then-21-year-old Zuckerberg and Choe, in his late 20s, immediately hit it off. Both shared an irreverent sense of humor and love of provocative art. Despite coming from very different backgrounds, they were able to bond over their creative passions.
What work did Choe do for Facebook’s office?
Zuckerberg was looking for an affordable way to decorate Facebook’s new 2,000 square foot office space in 2005. The office was located in a suburban house, so it featured mostly blank wall space perfect for murals. Zuckerberg gave Choe creative freedom to paint whatever he wanted in the office.
Over the course of several weekends in 2005, Choe came to Facebook’s headquarters to paint colorful psychedelic murals. He covered the office’s walls with large paintings of provocative images, including:
- A scene of a bedroom orgy
- Zuckerberg depicted as an octopus-like creature
- Mushroom clouds and other apocalyptic imagery
- Cartoon pandas and characters from video games like Mortal Kombat
Choe’s murals were vibrant, playful, and tongue-in-cheek. They perfectly matched the irreverent culture of the early Facebook team. The office decor helped capture the energy and creativity of the fast-moving start-up.
How was Choe compensated for his work?
When Choe first discussed the Facebook mural project with Sean Parker, he was hesitant to accept the job. At the time, he was focused on pursuing his own art career and did not need the exposure or work. However, Parker persuaded him to at least meet with Zuckerberg before declining the offer.
During their initial meeting, Choe told Zuckerberg he did not want cash payment for the murals. Instead, he proposed that Zuckerberg pay him in stock equity from Facebook, which was still a fledgling start-up in 2005. Zuckerberg agreed and offered the choice between:
- $60,000 cash payment
- Facebook stock options
Unsure of which to pick, Choe debated the choice with his father, who advised him to take the cash. Choe ignored the advice and boldly chose the stock options. At the time, it seemed like it could be the riskier choice. But it ended up paying off for him in a massive way.
How much were Choe’s Facebook stock options worth?
| Year | Value of Choe’s Facebook Shares |
|---|---|
| 2005 | $60,000 (estimate) |
| 2012 | $200 million |
| 2021 | $500 million-plus (estimate) |
When Facebook went public in 2012 at a valuation of over $100 billion, the value of Choe’s stock options skyrocketed. From an initial value of approximately $60,000, his 0.25% stake in the company was suddenly worth over $200 million.
Choe’s Facebook shares are now estimated to be worth over $500 million based on the company’s current valuation. Facebook stock has split several times since its IPO, allowing Choe’s ownership percentage to remain the same even as the total value has climbed higher.
In less than 10 years, Choe’s artwork resulted in him becoming a centimillionaire with a massive windfall of Facebook wealth. Not bad for a few weekends spent doodling murals and cartoons on the walls of Facebook’s office in 2005!
How did the Facebook stake impact Choe’s life?
Needless to say, the sudden fortune earned from his Facebook shares dramatically changed David Choe’s life.
Professionally, it allowed him to focus full-time on his true creative passions. He no longer needs to take on painting commissions or jobs solely for money. He has the freedom to pursue whatever projects he wants while knowing his finances are secure.
Personally, Choe was able to purchase luxury homes in locations like Hawaii and Las Vegas. He also invested some of his wealth back into his interests, like opening a pottery studio and gallery in Los Angeles.
Additionally, Choe reportedly gave away large portions of his stock earnings to friends and family. So while he indulged in some lavish purchases, he also generously shared his newfound wealth.
Post-Facebook career and net worth
Since cashing in on his Facebook windfall, Choe has continued his prolific art career. He publishes graphic novels, hosts a lewd podcast, and produces large-scale murals around the world. Some of his recent projects include:
- Snowman Monkey BBQ – A graphic novel published in 2013
- DVDASA – A podcast co-hosted with Asa Akira from 2011-2014
- The Bowery Mural – A giant public art piece done in New York City in 2008
Choe maintains a net worth of over $500 million. While no longer as actively involved with Facebook, he still holds millions of dollars worth of company stock. The value of his shares will likely continue rising given Facebook’s steady growth.
In interviews, Choe has indicated he is not very motivated by accumulating more wealth at this point in his life. Nonetheless, his bank account ensures complete freedom to pursue a lavish lifestyle and creative projects without needing to earn additional income.
Why was Choe’s payment method unique?
The way David Choe was compensated for his Facebook office murals in 2005 was highly unique for several reasons:
- It was uncommon at the time for start-ups to pay contractors in equity rather than cash. Offering stock options was rare for a company like early-stage Facebook.
- Choe’s decision to choose stock over the $60,000 cash payment seemed risky and unconventional. Start-up stock was seen as unstable compared to a fixed cash amount.
- The scale of the payoff from the stock growth was extraordinarily rare. Turning a few weekends of art into nearly $500 million in stock gains was virtually unheard of.
This deal reflected the unconventional thinking of both Choe and Zuckerberg. Choe disregarded norms by requesting compensation in volatile stock rather than cash. And Zuckerberg showed forward-thinking by using equity to pay for services with his limited funds.
In the end, the gamble and unconventional payment method paid off tremendously for both parties. It underscores how sometimes defying conventional wisdom can lead to exponential growth opportunities.
Conclusion
David Choe earned life-changing wealth from murals he painted at Facebook’s office in 2005. His compensation agreement of stock options rather than cash perfectly aligned with Facebook’s meteoric rise. What began as a small start-up grew into a company worth hundreds of billions of dollars, turning Choe’s artwork into a nine-figure fortune.
This transaction highlights the rewards possible from unconventional thinking. Both Choe and Zuckerberg ignored norms to reach their agreement. Without Facebook shares as payment for art, Choe may have never risen from a starving artist to a wealthy man able to pursue his creative passions without financial limitations.
Beyond just benefiting Choe financially, the murals he painted also hold historical significance. They represent a tangible piece of Facebook’s culture in its earliest days as a start-up. The famous office decor has been talked about for years as Facebook grew into a giant company that fundamentally changed the world.
So in the end, both Facebook and David Choe gained tremendously from this unusual arrangement. Facebook got vivid, life-breathing artwork and an energized office environment. And Choe earned a fortune that bought him complete creative freedom and financial security for life. Not a bad trade at all for some spray paint and stock options.