This is how you show confidence in your company.
Softbank president Nikesh Arora announced plans to buy 60 billion yen, or $US483 million, worth of the company’s shares.
He calls it a “personal bet” on Softbank.
Arora was previously Google’s chief business officer.
He is in line to take over Softbank, the Japanese telecom and internet giant. Softbank is currently run by Masayoshi Son, a business legend.
There’s a few things about this transaction…
1. If you were wondering how well paid Google executives can be, this gives you some idea! Arora joined Google in 2004, after the company IPO’d. He was so well paid over his 10 years at Google that he can afford to shell out $US500 million to buy shares in his new company.
2. It puts Jack Dorsey’s Twitter share purchase in perspective. Two weeks ago Jack Dorsey spent $US856,000 to buy Twitter shares. Dorsey said he was “investing in Twitter’s future.” Dorsey has net worth of ~$US2 billion according to Forbes. If he really wanted to send a strong signal, he could have spent a bit more than $US856,000.
Arora is well paid by Softbank, with total compensation in 2014 coming in at $US135 million thanks to Softbank poaching him from Google, and having to make up lost stock options.
Still, $US483 million is a lot of money.
“This is a large transaction for me, and involves taking an enormous risk in my life once again,” said Arora in a filing to disclose the stock buy. “However, I am extremely confident about the future of the SoftBank Group and the long-term objectives that we have set out. I intend to work closely with Mr. Son to make the vision a reality.”