Jack Dorsey will get $978 million in a Bonus after Musk’s Twitter Deal

Listen to this article

The former CEO and co-founder of Twitter, Jack Dorsey is dominant to collect a considerable bonus. His Twitter shares will transform into cash after the $44 billion purchase of the social media platform from Elon Musk. Dorsey has rejected collecting a salary from the company and selected to receive an annual paycheck of $1.40 billion.

Dorsey owns 2.4% of the company with around 18 million shares. He will collect $978 million in cash under the offer of Musk to purchase each Twitter share for $54.20. The current CEO of Twitter, Parag Agrawal will also move to a considerable payment package after closing the deal. He will receive $38.7 million due to the contract clause.

The total 2021 consideration for Agrawal was around $30.4 million, massively in stock awards. Ned Segal is one of the other Twitter executives and the company’s CFO. He will collect $25.4 million if Musk purchases the company and brings in a new management team. The chief legal officer of Twitter, Vijaya Gadde is expected to receive $12.4 million. The chief customer officer of the company, Sarah Personette, will get around $11.2 million.

Twitter approved the Takeover Offer from Musk

Meanwhile, Dorsey informed the acceptance of the supposed purchase and Twitter had approved the takeover offer from Elon Musk. He said in a Tweet that everything is in its right place. Dorsey said Musk’s objective of creating a maximum trusted and the widely inclusive platform is the right one. This objective is similar to Agrawal’s vision for the platform.

The reaction of Agrawal to the news was more restrained. He pointed out that Twitter has a target and bearing that is impacting around the world. It is unclear whether Agrawal will keep his position as CEO after finalizing the deal with various elements around the purchase. Elon Musk said in SEC filings that he doesn’t believe in the current management of Twitter.

Twitter Executives will lose their positions after the Deal

This statement has indicated that Agrawal and other executives of Twitter will not sustain their positions after the deal. The social platform said the board collectively approved the transaction. Twitter is supposed to close this year after the regulatory approval from the shareholders. However, Musk is well-known for using Twitter to present various ideas.

Musk uses Twitter to present his business interests, politics, cryptocurrency, and other innovative ideas. Twitter has announced that it has approved the offer Musk to purchase the publicly trading company at $54.20/ share. It is noteworthy that news circulated reporting Twitter trading has halted. The company also released a press statement and confirmed the acceptance of Musk’s offer to take Twitter as a private platform.

Twitter Board conducted a process to consider Musk’s proposal

Twitter Board managed a significant and handsome process to consider the proposal of Elon Musk. The supposed transaction will provide a considerable cash premium. It would become the best path for the stockholders of Twitter. Musk also said that free speech is the key to Twitter’s success. However, most of his concepts including optimizing the social network and adding new products are the key areas.

Musk said free speech is the key element of an efficient democracy. Twitter is the digital town square of the future of humanity. Musk also needs to make Twitter a more effective platform than ever. The company will empower the product with the latest features and provide an open-source algorithm to enhance trust. Twitter confirmed that the board has unanimously approved the transaction and seems to close this year.