The CEO and founder of Twitter, Jack Dorsey, received a salary of one dollar and forty cents ($1.40) for the whole of 2018. This roughly converts to N540. According to the company’s filing with the United States SEC, he received the money this week.
Dorsey declined most of his compensations and benefits since 2015 when he returned as CEO of Twitter. He once left the CEO position in 2008, two years after he founded the company.
The money is significant in relation to the 140-character limit Twitter had before it increased to 280 in 2017. The question now is if he will increase his pay in line with the new character limit.
Dorsey is not only being modest with Twitter. He is also receiving a meagerly $2.75 annual salary from his other company, Square. This amount is also in alignment with the 2.75% commission the company received per transaction. Square is a financial services and mobile payment company based in America.
Does this mean Dorsey is poor? Not at all. He has huge shares in both companies. As of today, he is worth $5.3 billion.
The CEO declining the paycheck is symbolic. He is using this very humble gesture to show his team that he strongly believes in the profitability of the companies. He is also confident that the value of his shares in the company would yield enough incentive for him.
In the last quarter of 2018, Dorsey sold 1.7 million of his shares in Square and netted $80 million after estimated taxes. Adding his 61 million shares at Square, his total net worth stood at $4.7 billion.
This is not a new phenomenon in the tech space, Silicon Valley bosses have been famous for the same. Mark Zuckerberg of Facebook and the duo of Google’s Larry Page and Sergey Brin only take $1 paycheck every year. They have also attached their compensations to the performance of the company.