Former Twitter CEO Jack Dorsey is reportedly set to receive nearly $1 billion once the sale of the social media platform to Elon Musk closes.
Twitter announced on Monday that it had accepted Musk’s offer to buy it for $44 billion, or $54.20 per share.
As The Hollywood Reporter noted, Dorsey, a co-founder of Twitter, owns 2.4% of the company or over 18,000,000 shares.
The outlet points out, “That would set Dorsey up for a $978 million cash payout should the deal be completed.”
And Dorsey is not the only executive who could receive a hefty payout.
The Hollywood Reporter explained, that Twitter CEO Parag Agrawal and CFO Ned Segal “have so-called ‘Change in Control’ clauses in their contracts, according to Twitter’s latest proxy filing. Agrawal’s clause specifically cites his reporting to the ‘board of directors of a publicly-traded entity,’ meaning any deal to take Twitter private would trigger the clause.”
It went on:
“If Musk terminated their employment, Agrawal would be in line for a $38.7 million pay package, with Segal receiving a $25.5 million package. They would also need to meet ‘non-solicitation, non-disparagement and confidentiality conditions,’ according to the Twitter proxy.”
Additionally, Twitter’s board chair, Bret Taylor, would receive over $3 million, and its former board chair would get a $50.6 million payout.
Taylor announced on Monday that Twitter had accepted Musk’s offer to buy the company.
Dorsey tweeted on Monday night, “I love Twitter. Twitter is the closest thing we have to a global consciousness.”
“The idea and service is all that matters to me, and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret,” he continued.
The idea and service is all that matters to me, and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step.
— jack (@jack) April 26, 2022
Dorsey said that the company had been “owned by Wall Street and the ad model” and that Musk’s decision to take it private is “the correct first step.”
He went on:
“In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”
Dorsey also said that Musk’s “goal of creating a platform that is ‘maximally trusted and broadly inclusive’ is the right one,” and that it is the same goal as Agrawal.
“Thank you both for getting the company out of an impossible situation. This is the right path…I believe it with all my heart,” he added.
