Twitter’s founder and former CEO; Jack Dorsey
Jack Dorsey is set to receive $978 million when Twitter closes the deal with Elon Musk, according to a report from The Wrap. On Monday, Twitter’s board accepted Elon Musk’s $44 billion buyout offer which will see the billionaire own 100 percent of the social media company.
Once the deal is completed, Jack Dorsey’s shares which are about 2.5 percent of the company will be converted to cash. Jack Dorsey chose to take a $1.40 yearly paycheck from Twitter instead of a salary. He owns more than 18 million shares and under Elon Musk’s $54.20 per share bid, the former CEO of Twitter would receive $978 in cash.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Bret Taylor, Twitter’s Independent Board Chairman said after Elon Musk’s offer got accepted.
Twitter’s acceptance of Elon Musk’s bid has raised concerns from several parties. For example, various human rights groups have come up to shed light on the possibility of hate speech thriving on Twitter all in the name of “free speech” which is the agenda that Elon Musk is pushing. “The last thing we need is a Twitter that willfully turns a blind eye to violent and abusive speech against users, particularly those most disproportionately impacted, including women, non-binary persons, and others,” Michael Kleinman, the director of technology and human rights at Amnesty International USA said on Monday.
Twitter’s CEO Parag Agrawal is also set to receive an approximated figure of $42 million if he has to relinquish his role as Twitter’s CEO within 12 months after the acquisition of the company by Elon Musk is completed.
The company’s other executives will receive compensations as follows; CFO Ned Segal would receive $25.4 million, Legal Chief Vijaya Gadde would receive $12.4 million and Chief Customer Officer Sarah Personette would receive $11.2 million. These executives will receive these on the condition that Elon Musk brings in new management to Twitter.
The Twitter-Musk deal is still subject to shareholders’ decision and regulatory approval but is expected to close this year.
Elon Musk will be required to pay Twitter a termination fee of $1 billion if he can’t secure funding for his bid, according to a recent SEC filing. Twitter will also have to pay Elon Musk $1 billion in breakup fee if the company decides not to go through with the deal as a result of another offer, according to this filing.