Twitter co-founder and former CEO Jack Dorsey will receive significant cash if Elon Musk manages to buy Twitter for $44 billion, as his shares will be converted into cash.
Dorsey, who did not receive a salary from Twitter during his tenure, owns 2.4% of the company with 18 million shares. Musk himself offered to buy Twitter shares for $54.20, so Dorsey could get $978 million in cash.
Current Twitter CEO Parag Agrawal will also earn significant money thanks to the 'change in control' clause that is part of his contract. If Musk brings in new management, Agrawal will take home $38.7 million.
Other Twitter executives such as CFO Ned Segal will receive $25.4 million if the company is sold and Musk brings in new management. Meanwhile, Chief Legal Officer Vijaya Gadde will receive USD 12.4 million and Chief Customer Officer Sarah Personette will receive USD 11.2 million, as quoted from TechCrunch, Wednesday (27/4/2022).
Following news that Twitter had accepted Musk's offer to take over, Dorsey gave his back for the acquisition. Dorsey cites Musk as the only solution he can trust.
Meanwhile, Agrawal's reaction was more concise than Dorsey's. Maybe he realized that his position as CEO was a bit vulnerable, considering that after an acquisition, the new owner of the company usually brings new management.
Moreover, in his report to the SEC, Musk said he had no confidence in Twitter's current management, indicating that Agrawal and other Twitter executives could be removed once Musk takes over the company.
Twitter said the transaction, which was approved unanimously by the board of directors, would be finalized this year after obtaining approval from shareholders and regulators.
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