Twitter Co-founder and Former CEO Jack Dorsey is all set to walk away with a whopping $978 Mn if Twitter and Elon Musk successfully close the deal leading to the former gaining sole control of the platform.
Elon presented Twitter’s 11-member board with an impressive offer to take the company private at $54.20 per share earlier this month. As both parties came to an agreement at Elon’s originally quoted price, shareholders with sizeable stakes in the company are slated to recieve cheerful bank Statements.
Dorsey, who stepped down as Twitter CEO in November 2021, has a 2.4% stake in the company, which sums up to be around 18 million shares. At Musk’s hefty price of $54.20 per share, Dorsey’s slice of the pie would end up being $978 Mn.
Dorsey won’t be the only one expecting a paycheck. Twitter’s current CEO Parag Agrawal, CFO Ned Segal and Chief Legal Official Vijaya Gadde, will be making $38.4 Mn, $25.4 Mn and $12.4 Mn respectively. This is because these positions being of such high importance, come with a “Change in control clause” in their job contracts. This clause allows for compensation if the company faces a change in leadership which eventually leads to them losing their positions. The clause exists since these individuals report to the board of a “Publically traded entity”.
Other executives who could be recieving payouts in a similar fashion include Chief Customer Officer Sarah Personette ($11.2 Mn), board chair Bret Taylor (~$3 Mn) and former board chair Omid Kordestani ($50.6 Mn).
Incidentally, Dorsey recently displayed vocal and exemplary faith in Elon Musk as a visionary fit for the company’s future. His successor Parag Agrawal, on the other hand, advised his staff to take the news with a grain of salt, saying the platform is headed towards an uncertain future.