Twitter’s co-founder and former CEO Jack Dorsey is poised to receive a significant payday if Elon Musk’s $44 billion acquisition of the social media giant closes, as his Twitter shares would be converted into cash. Dorsey, who has declined to take a salary from the company and instead chose to take a $1.40 annual paycheck, owns 2.4% of the company, with just over 18 million shares. Under Musk’s offer to buy each Twitter share for $54.20, Dorsey would receive a $978 million in cash, according to a report from The Wrap.
The company’s current CEO Parag Agrawal would also be set for a significant compensation package if the deal closes. If Musk were to bring in new management, Agrawal would receive $38.7 million due to a clause in his contract, according to the company’s latest proxy filing. Agrawal’s total compensation for 2021 was $30.4 million, largely in stock awards.
As for other Twitter executives, the company’s CFO, Ned Segal, would receive $25.4 million if the company sold and Musk brought in new management. The social media giant’s chief legal officer Vijaya Gadde would get $12.4 million, whereas Twitter’s chief customer officer Sarah Personette would receive $11.2 million.
Following the news that Twitter had accepted Elon Musk’s takeover offer, Dorsey expressed his approval of the proposed acquisition. In a tweet thread that starts out with a link to Radiohead’s “Everything In Its Right Place,” Dorsey said that “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 went on to say that Musk’s goal of creating a platform that is “maximally trusted and broadly inclusive” is the right one and that this goal aligns with Agrawal’s vision for the platform as well. He concluded by saying that “this is the right path” and that he is “happy Twitter will continue to serve the public conversation.”
Agrawal’s reaction to the news was more subdued, noting in a tweet that “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”
As with many things surrounding the acquisition, it’s unknown if Agrawal will remain in his position as CEO if the deal goes through. However, Musk had stated in SEC filings that he did not have confidence in Twitter’s current management, which indicates that Agrawal and other Twitter executives may not remain in their positions once Musk takes control.
Twitter says the transaction, which was unanimously approved by the board, will likely close this year following shareholder and regulatory approval and “the satisfaction of other customary closing conditions.”
How’d we get here, you may ask? Here’s a complete timeline of the Elon Musk-Twitter saga.
Source: Tech Crunch Social
Jack Dorsey set to pocket 8M if Elon Musk’s Twitter acquisition closes