Twitter co-founder and former CEO Jack Dorsey is poised to receive a sizable payday as Elon Musk’s $44 billion takeover of the social media giant closes as his Twitter shares would be turned into cash. Dorsey, who has declined to take a salary from the company and instead opted for an annual salary of $1.40, 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 $978 million in cash, according to a report by The Wrap.
The company’s current CEO, Parag Agrawal, would also receive a significant compensation package if the deal closes. If Musk brought 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 equity awards.
As for other Twitter executives, the company’s CFO, Ned Segal, would receive $25.4 million if the company sold and Musk took on new management. Social media giant Vijaya Gadde’s chief legal officer would receive $12.4 million, while Twitter’s chief customer officer Sarah Personette would receive $11.2 million.
Following news that Twitter had accepted Elon Musk’s takeover offer, Dorsey expressed its approval for the proposed takeover. In a tweet thread that begins with a link to Radiohead’s “Everything In Its Right Place,” Dorsey said that “Basically, I don’t believe anyone should own or control Twitter. It wants to be a public good at the protocol level, not a company. Elon solves the problem.” that it is a company, but Elon is the only solution I trust. I trust his mission to expand the light of consciousness.”
Basically, I don’t believe anyone should own or run Twitter. It wants to be a public good at the protocol level, not a business. However, Elon solves the problem of being a company and is the only solution I trust. I trust in his mission to expand the light of consciousness.
— jack⚡️ (@jack) Apr 26, 2022
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 is also in line with Agrawal’s vision for the platform. He concluded by saying that “this is the way to go” and that he is “glad that Twitter will continue to serve the public conversation”.
Agrawal’s response to the news was more restrained, noting in a tweet that “Twitter has purpose and relevance that touches the whole world. Deeply proud of our teams and inspired by work that has never been more important.”
As with many matters surrounding the acquisition, it is unknown whether Agrawal will remain in his position as CEO if the deal goes through. However, Musk had stated in SEC filings that he had no confidence in Twitter’s current management, indicating that Agrawal and other Twitter executives may not remain in their posts once Musk takes control.
Twitter says the transaction, which was unanimously approved by its board of directors, is likely to close this year following shareholder and regulatory approval and “the fulfillment of other customary closing conditions.”
How did we get here, you might ask? Here’s a full timeline of the Elon Musk-Twitter saga.