Twitter announced that Dick Costolo will not receive any severance for stepping down as CEO.
But if he had been fired? He would have been entitled to millions of dollars.
According to an SEC filing in April, Costolo would have made roughly $US3.2 million in severance pay, mostly in stock, if he was fired by the company.
If Twitter had a change in ownership, and Costolo had lost his job as a result of that, he would have earned a much bigger payout — worth more than $US25 million.
But since Costolo voluntarily stepped down, he’s not entitled to anything, as seen below. All of his unvested stock will also be cancelled out, according to an 8K filing.
The amount listed in the filing is based on the share price of $US35.87 per share, the closing market price on December 31, 2014. Twitter share closed at roughly the same amount ($US35.84) on Thursday.
Although Costolo is walking away with nothing in severance, he’s already made quite a fortune by holding on to Twitter stock from early on. He still owns roughly 8 million Twitter shares, which would be worth almost $US300 million.