Jack Dorsey is set to walk away with nearly US$1bn once Elon Musk’s takeover of Twitter Inc (NYSE:TWTR) is confirmed.
Dorsey, who co-founded Twitter in 2006 and is a former chief executive before stepping down last year owns nearly 18mln shares or a 2.4% stake in the company.
Musk’s US$54.20 per share offer means the 45-year-old will bank US$978mln once the deal is finalised.
Other board members will also bag a considerably smaller but still hefty payday.
Director Martha Lane Fox, who owns 0.004% of a stake in Twitter is set to walk away with US$1.7mln, while Robert Zoellick, will receive US$1.1mln.
Former chairman Omid Kordestani, would receive over $50m, for his 934,247 shares while current chairman Bret Taylor’s stake would be worth around $3m.
Executives, such as Dorsey’s successor Parag Agrawal, would receive pay-outs should their employment end as part of a change in control event, such as the company being taken private.
That’s because it would trigger the accelerated vesting of shares awarded as restricted stock units, essentially a form of compensation and performance-related pay.
Agrawal would receive a US$38.7mln package should his employment be terminated, on top of US$7mln for his 128,000 shares.
Chief financial officer Ned Segal would pocket US$25.5mln, while his 394,000 shares would be worth US$21mln.
General council Vijaya Gadde could pocket an extra US$12.5mln in addition to his US$32mln worth of shares, while chief customer officer Sarah Personette could secure receive US$11.2mln on top of her shares worth US$7mln.
Staff at Twitter may also benefit financially from the sale.
Since 2013, a share scheme has meant staff have taken as much as 50% of their earnings in stock options.
About 41.7m shares can be issued in options, warrants and rights under Twitter’s equity compensation plans, which would be worth around US$2.2bn.
However, an average exercise price of US$27 means a profit of US$1bn can be delivered if exercised and then cashed at Musk’s US$54.20 offer.
Employees have also benefitted from being able to buy shares at a 15% discount.
Staff may fear missing out on the long-term value of the stock they hold however, after the tech rally last year saw the price climb as high as US$70 before retreating due to a global economic downturn.
Vanguard, the largest shareholder in Twitter, will pocket US$4.5bn for its 10% stake, while Morgan Stanley (NYSE:MS) will get US$3.5bn and BlackRock and State Street US$2bn each.