If Elon Musk’s takeover of Twitter manages to close it, the company’s top executives could receive huge compensation packages, even if they personally prefer to run the company.
Twitter co-founder Jack Dorsey, who stepped down as CEO late last year, has long declined a salary from the social media platform, earning just $1.40 a year in salary. However, Dorsey owned 2.4% of the company, or about 18,042,428 shares, which Musk bought for $54.20 each.
This will allow Dorsey to pay $978 million in cash if the deal goes through.
But other Twitter executives could receive cash payments if they stop doing so or if Musk assembles his own management team. CEO Parag Agrawal, who replaced Dorsey late last year, as well as CFO Ned Segal, have so-called “Change of Control” clauses in their contracts, according to the latest Twitter file. Agrawal’s point specifically cites his report to the Board of Directors of a publicly traded entity, meaning that any transaction involving Twitter personally will result in a point.
Had Musk been fired, Agrawal would have demanded a $38.7 million compensation package, while Segal would have received $25.5 million. They also had to meet “no-demand, no-humiliation and confidentiality conditions,” a representative said on Twitter.
Of course, it’s not entirely clear whether Agravil wants such an outcome. You can feel the melancholy tone in the deal announcement: “Twitter has a purpose and an urgency that touches everyone. We are deeply proud of our teams and the inspired work that has never been more important.”
And of course, when Twitter stock trading was only in the $70 range last year, paying $54.20 could be even more frustrating.
Meanwhile, Twitter chairman Brett Taylor will receive $3 million in cash compensation, while former chairman Omid Cordestani will receive $50.6 million.
Source: Hollywood Reporter

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.