Twitter Founder Jack Dorsey Poised for $978 Million Payday if Elon Musk Closes Deal
Twitter founder Jack Dorsey stands to procure a $978 million payday if Elon Musk completes his adversarial takeover of the social media wide, whereas unusual CEO Parag Agrawal could maybe well maybe procure $39 million from his golden parachute equipment.
Dorsey, who stepped down as CEO slack closing year, holds merely over 18 million shares in Twitter — which has been the bulk of his compensation whereas he took a $1.40 annual paycheck whereas serving as chief executive since the platform launched in 2006. With Musk’s buyout offer at $54.20 per share, Dorsey stands to poke faraway from his firm with merely underneath $1 billion, in step with the firm’s most unusual proxy filing.
Other Twitter mavens could maybe well maybe leer cash payouts if Musk brings in unusual administration and terminates them. Agrawal, who changed Dorsey closing year as CEO, and CFO Ned Segal, both comprise a “alternate on prime of things” clause of their contracts, which suggests a deal to clutch Twitter private would trigger that clause because he reports to the board of a “publicly-traded entity,” in step with its filing.
Moreover, Twitter’s board chair Bret Taylor would bag a payout of merely over $3 million and vulnerable board chair Omid Kordestani would procure $50.6 million in his payout.
On Monday, Twitter’s board current Musk’s offer to establish all of the stock in the social media wide for $44 billion and clutch the firm private. This Twitter bear shut is believed to be the largest deal taking a firm private in on the least two a long time, in step with data from Dealogic.
In the closing loads of weeks, the social media firm and the Tesla boss comprise been dueling over Musk’s initial proposal to bear shut Twitter for some $43 billion after he got a 9.2% stake in the firm. Musk then began mounting a adversarial takeover after becoming its largest individual shareholder.
Twitter before every thing tried to withstand the adversarial takeover by utilizing a “poison pill,” or a rights scheme, to fend off Musk, whereas he went ahead with securing some $46 billion in funds for the acquisition. The 2 aspects then met over the weekend, with Twitter agreeing to Musk’s $44 billion offer. The deal is quiet pending closing approval by shareholders and regulators, but it’s some distance anticipated to shut later this year.
For the file: A outdated version of this memoir incorrectly stated that Parag Agrawal would procure an exit equipment in step with sale of his shares.